April 30 (Reuters) – London’s FTSE 100 index rose on Thursday, with upbeat results from Rolls-Royce and Glencore bolstering sentiment, while rate-sensitive mid-cap stocks rallied after the Bank of England held its interest rate steady.
The blue-chip FTSE 100 (.FTSE), opens new tab closed 1.6% higher at 10,378.82 points, while the midcap FTSE 250 (.FTMC), opens new tab gained 1.2%, snapping a five-day losing streak.
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Engineering firms were mixed as Rolls-Royce (RR.L), opens new tab climbed 7.6% after reiterating its profit outlook, offering the biggest boost to the benchmark index, while Weir Group (WEIR.L), opens new tab slid 4% after reporting a fall in first-quarter orders.Water utility United Utilities (UU.L), opens new tab jumped 11.1% to the top of the FTSE 100 after the company forecast an increase in annual revenue and raised its five-year investment plan.Glencore shares (GLEN.L), opens new tab added 2.6% after reporting a 19% rise in its first-quarter copper production, while Irish energy distributor DCC (DCC.L), opens new tab dropped 5.8% after rejecting a 4.95-billion-pound ($6.66 billion) takeover proposal.Meanwhile, the Bank of England kept its main lending rate steady at 3.75%, as widely expected and set out scenarios for the economic impact of the Iran war.
“We are still minded to think that the recessionary risks facing the economy will limit any second round inflation effects … but if oil prices continue to move higher, it is hard to see how the Bank avoids having to hike later this year,” said Luke Bartholomew, deputy chief economist at Aberdeen.
The pound appreciated 0.7% against the dollar, while gilt yields slipped across the board.
Global oil prices retreated from a four-year high, but concerns that the U.S.-Iran war could worsen and lead to a protracted Middle East oil supply disruption lingered.
Rising crude prices stoked inflation worries, bolstering gold prices , which in turn lifted shares of precious metal miners (.FTNMX551030), opens new tab by 5%.
The FTSE 100 is up around 2% this month, far below European and U.S. benchmarks, as markets view Britain as highly vulnerable to the jump in energy prices due to the country’s heavy use of natural gas.
Reporting by Medha Singh and Shashwat Chauhan in Bengaluru; Editing by Vijay Kishore and Tasim Zahid
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