Commodities, Travel segments lead UK equity rally; Omicron fears

Buildings are seen in the Canary Wharf business district, amid the coronavirus disease (COVID-19) outbreak, in London, Britain, January 27, 2021. REUTERS / Peter Cziborra / File Photo

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  • Schroders signs deal to buy 75% of Greencoat Capital
  • Business confidence began to feel the impact of the Omicron
  • Copper, oil prices rise
  • FTSE 100 and FTSE 250 add 0.9% each

December 21 (Reuters) – UK stocks rebounded on Tuesday, led by commodities and travel stocks, although investor fears persist over the prospect of further restrictions amid an increase in Omicron variant cases just a few days before the Christmas holidays.

The blue chip FTSE 100 Index (.FTSE) and the Domestic Focused Mid-Cap Index (.FTMC) each gained 0.9%.

Oil majors BP (BP.L) and Royal Dutch Shell (RDSa.L) added nearly 1% each, following higher crude prices, while industrial metal miners (.FTNMX551020) gained 2.4 % on higher copper prices, helped by a weaker dollar and concerns about tight supply.

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The travel and leisure sector (.FTNMX405010) recovered 0.8% after losing 0.7% in the previous session.

UK blue chip FTSE 100 has gained 12.5% ​​so far this year, but lags behind its European and US peers as the benchmark is made up of a significant proportion of the top sectors. affected by the pandemic such as energy and banking.

“The aftermath of Brexit is still lagging behind the UK economy and there aren’t as many tech stocks listed in London either and these type of stocks have had a spectacular performance this year,” Susannah added. Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown.

“The UK market has a lot of energy miners and stocks, so if commodities are stronger it could do better next year. However, that doesn’t necessarily mean that this will make up for the lack of gains we’ve had in the past. in recent years. years. “

British Prime Minister Boris Johnson said on Monday he would tighten restrictions on coronaviruses to slow the spread of Omicron if needed, after the Netherlands began a fourth lockdown and as other European countries consider restrictions of Christmas. Read more

UK business confidence began to feel the impact of the Omicron variant this month, alongside further upward pressure on prices and personnel costs, according to a survey. Read more

Schroders plc (SDR.L) gained 2.3% after the fund manager struck a deal to buy 75% of Greencoat Capital Holdings Limited for £ 358million ($ 473.17million). Read more

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Reporting by Bansari Mayur Kamdar in Bangalore; Editing by Vinay Dwivedi and Sherry Jacob-Phillips

Our Standards: Thomson Reuters Trust Principles.

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Natalee Broderick

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