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Tuesday, December 6, 2022
Stocks & Shares

FTSE 100 rebounds as rising crude prices boost energy stocks

energy stocks

The FTSE 100 index gained 0.6% after three consecutive sessions of losses

London’s blue-chip stock index bounced off two-week closing lows on Thursday, as energy stocks received a lift from rising crude prices and investor sentiment steadied ahead of an annual conference of world central bankers.

The FTSE 100 index gained 0.6% after three consecutive sessions of losses.

Oil majors Shell and BP rose over 1% each, as crude prices were supported by the prospect of tighter supplies amid disruptions to Russian exports and the partial shutdown of a U.S. refinery.

Ireland’s CRH rose 2.7% to the top of FTSE 100 after the building materials firm reported strong first-half results.

The global sentiment improved on Thursday after a bout of selling this week on concerns about a European recession as well as hawkish signals from the U.S. Federal Reserve policymakers.

We are definitely entering a period of weaker economic activity, but the evidence from companies that have reported so far this year does not suggest that it’s really hitting them, said Jamie Ross, fund manager of Henderson EuroTrust.

When I look ahead, I do expect the weakness in economic data to start to translate into weakness in earnings. Areas like industrials, autos and semiconductors, we’d expect to see some pressure, Ross said.

Data showed British car production rose for a third consecutive month in July but remained 46.4% below pre-pandemic levels as the industry struggles with supply chain shortages, structural changes and weak exports.

Investors are bracing for hawkish signals from Fed Chair Jerome Powell when he speaks at the Jackson Hole symposium on Friday.

The domestically exposed FTSE 250 index inched up after sinking to a more than one-month low in the previous session.


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