A worker shelters from the rain under a Union Flag umbrella as he walks past the London Stock Exchange in London, Britain October 1, 2008. REUTERS/Toby Melville
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- Paragon climbs 49% jump in HY earnings, strong prospects
- Crest Nicholson benefits from positive outlook
- FTSE 100 rose 0.3%, FTSE 250 added 0.2%
June 14 (Reuters) – British stocks stabilized on Tuesday, with some positive stimulus from financial stocks and several strong earnings updates, a day after concerns over the economic slowdown dragged major British indices into their fifth straight losing session.
The FTSE 100 (.FTSE) was up 0.3% by 0817 GMT, with shares in Asia-focused British bank HSBC (HSBA.L) up 3% to give the blue-chip index the biggest boost.
Oil majors BP Plc (BP.L) and Shell Plc (SHEL.L) rose 1.4% and 0.8% respectively, tracking volatile crude prices.
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The domestically focused mid-cap index FTSE 250 (.FTMC) edged up 0.2%, hovering near its lowest level in more than three months.
Global equity markets were shaken as investors priced aggressive central bank policy measures to quell inflation amid the Ukraine crisis, amid fears it could lead to a global economic slowdown.
Despite these fears, the FTSE 100 is down just 2.1% year-to-date, compared to a 15.4% decline in Europe’s Stoxx 600 (.STOXX) and a 21% decline in the US index S&P 500 (.SPX), 3% due to its heavy exposure to energy and mining companies.
“Outperformance will continue. As inflation fears emerge, people are struggling to look for assets that closely correlate to real assets to provide inflation protection, and commodities are a source of that,” said Edward Park, chief investment officer at Brooks Macdonald wealth management.
“The UK market … has been less exposed to some dramatic moves in the bond market as markets still expect the Bank of England to be as concerned about economic growth as it is about inflation.”
The central bank is expected to hike interest rates by 25 basis points (bps) to 1.25% on Thursday.
Paragon Banking (PAGPA.L) rose 8.6% after raising its 2022 guidance and posting strong growth in new lending. Continue reading
Homebuilder Crest Nicholson (CRST.L) rose 6.2% after forecasting higher adjusted earnings. Continue reading
DiscoverIE Group (DSCV.L) gained 4% after the electronic components manufacturer and supplier reported stronger underlying full-year pre-tax income.
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Reporting by Devik Jain in Bengaluru
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