London stocks rise on China recovery hopes; energy shares fall
Reuters
Published Jun 27, 2023 08:16
Updated Jun 27, 2023 17:03
By Shashwat Chauhan and Shristi Achar A
(Reuters) -British equities rose on Tuesday as China-exposed stocks jumped after Beijing said domestic growth would be higher in the second quarter, while a drop in oil and healthcare stocks limited gains.
The blue-chip FTSE 100 was up 0.1%, while the more domestically-focussed FTSE 250 midcap index added 0.5%.
China's Premier Li Qiang told delegates at the World Economic Forum in Tianjin that the country's economic growth is expected to reach the annual target of around 5%, and will take steps to expand domestic demand and open markets.
"Investors want to see those growth figures actually being achieved rather than just promises that they will be achieved," said Danni Hewson, head of financial analysis at AJ Bell.
"There has been disappointment (in the past), but don't bet against China when the authorities really get their finger out."
China-exposed banks HSBC (LON:HSBA) and Standard Chartered (LON:STAN) added 1.0% and 2.0%, respectively, while insurer Prudential (LON:PRU) gained 1.5%.
Limiting gains, oil stocks fell 1.1%, tracking weakness in crude prices, while pharmaceuticals also weighed on the index, down 1.0%.
The exporter-heavy FTSE 100 is on track to post quarterly losses after two straight quarters of gains, as surging domestic inflation and continued interest rate hikes by the Bank of England (BoE) dented risk appetite.
Among single stocks, BT Group (LON:BT) led declines on FTSE 100, down 3.6% after UBS downgraded the telecoms firm to "sell" from "neutral".
JD Sports Fashion fell 2.7% after the sportswear retailer said there was softening in its North American business in June.
PZ Cussons (LON:PZC) slumped 6.7% after the soap maker said that devaluation of the Nigerian currency naira would adversely impact its profit next year.
Aston Martin tanked 9.2% as the luxury carmaker skipped reporting its sales volume target.
Meanwhile, BoE policymaker Swati Dhingra said there are "promising signals" for a further decline in British inflation.
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Written By: Reuters
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