Economic news

Upbeat Earnings Help FTSE 100 Rebound from Last Week's Selloff

  • Bunzl, Associated British Foods up after results
  • Rolls-Royce top of FTSE 100 after price target raise
  • FTSE 100 up 0.8%, FTSE 250 adds 0.4%

Feb 27 (Reuters) - The UK's FTSE 100 rose on Monday after upbeat earnings reports from Associated British Foods and Bunzl helped pull the index up from last week's battering on worries about high U.S. interest rates.

The blue-chip FTSE 100 rose 0.8%, after recording its worst weekly performance so far this year as hotter-than-expected U.S. consumer spending data on Friday sparked a selloff on both sides of the Atlantic.

Bunzl gained 1.8% after the business supplies distributor raised its annual dividend and reported a higher full-year profit.

Primark owner Associated British Foods climbed 1.3% after raising its outlook for the full year 2022-23 for the clothing retailer.

Rolls-Royce rose for the third straight day, adding 4.5% to the top of the FTSE 100 as Jefferies raised its price target on the jet engine maker's stock after it reported higher profits last week.

"The market really sold off on Friday around jitters that the Federal Reserve is going to hike a lot more than markets were expecting," said Patrick Armstrong, chief investment officer at Plurimi Wealth.

"That's actually not terrible news for Europe as it generally created a bit of weakness in the sterling, that's really good news for the multinationals."

The FTSE 100 has had a stellar start to the year so far, rising 6.4% as strong earnings and a steady rise in commodity prices helped the index outperform major global peers, outweighing a gloomy economic outlook.

Later in the day, Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen will announce a new Brexit deal for Northern Ireland, if the two can agree final details during lunchtime talks in Britain.

The more domestically-inclined FTSE 250 midcap index rose 0.4%, with a near 16% slump in shares of Dechra Pharmaceuticals capping gains.

The veterinary drugmaker expects full-year profit to be at the lower end of analysts' expectations.

Reporting by Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza and Dhanya Ann Thoppil

Source: Reuters

To leave a comment you must or Join us

More news

Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree