London stocks rise after blowout report from BP, China-linked stocks boom
Reuters
Published Feb 06, 2024 08:36
Updated Feb 06, 2024 17:24
By Khushi Singh and Shubham Batra
(Reuters) -Britain's FTSE 100 touched a near four-week high on Tuesday, propelled by a blowout profit forecast from BP (LON:BP) as it raised share buybacks, while China-linked stocks surged after the world's second-largest economy pledged stock market support.
The blue-chip FTSE 100 snapped its longest losing streak since October 2023 to rise 0.9% and the mid-cap FTSE 250 index climbed 0.8%.
BP topped the FTSE charts with a 5.5% jump after the energy major posted forecast-beating earnings of $3 billion for the fourth quarter and boosted share repurchases.
The stock hit a two-month high and logged its best day in a year.
"Although 2023 full year profits were shy of estimates, the strong Q4 performance suggests that the company gathered steam at the end of last year, which is a good backdrop for 2024’s performance," said Kathleen Brooks, research director at XTB.
Broader oil and gas shares rose 2.2% to their highest in a month, also supported by an uptick in crude prices. [O/R]
The industrial metal miners index added 0.7% on a softer dollar and improved risk sentiment following state-backed buying of Chinese stocks. [GOL/] [MET/L]
Other China-exposed stocks such as Standard Chartered (LON:STAN), HSBC (LON:HSBA) and Prudential (LON:PRU) rose between 1.0% and 3.8%, while the banks index moved 1.5% higher.
Meanwhile, a survey showed British retailers reported sluggish sales in January as shoppers remained cautious about spending, underscoring how high inflation and borrowing costs are weighing on households.
Bank of England Chief Economist Huw Pill said on Monday that the question now for most of the central bank's policymakers was when it would be appropriate to begin to cut interest rates, not if.
In corporate updates, shares of Renishaw (LON:RSW) jumped 16.0% to the top of FTSE 250 after the British engineering firm said it expects trading conditions to improve in the second half of the fiscal year.
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Virgin Money (LON:VMUK) UK gained 2.1% after the challenger bank retained its annual profit margin forecast.
Written By: Reuters
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