Oct 5 (Reuters) – London’s FTSE 100 rose on Tuesday, buoyed by heavyweight banks on higher yields, while fast-food chain Greggs jumped after raising its profit forecast.
The blue-chip FTSE 100 index (.FTSE) gained 0.6% by 0800 GMT after three straight sessions of losses, with HSBC Holdings (HSBA.L), Royal Dutch Shell (RDSa.L), BP (BP.L), and Lloyds Group (LLOY.L) among the top boosts.
The domestically focussed mid-cap index (.FTMC) advanced 0.2%. Baker and fast-food chain Greggs (GRG.L) provided the biggest support, rising 3.7% after it raised its full-year profit forecast despite supply chain and staffing disruptions. read more
“Investors are highly anticipating a spending-driven rally in the upcoming weeks, coupled with higher-than-expected quarterly results as most of the businesses operated with the lowest set of restrictions in the three months stretch for the first time in the coronavirus pandemic,” said Kunal Sawhney, chief executive at Kalkine.
A jump in oil prices to three years highs also supported the benchmark index, although it also fuelled inflation worries.
The FTSE 100 index has gained nearly 9% so far this year on support from accommodative central bank policies but has traded range-bound around the 7,000 psychological level since August.
The index is around 10% away from its pre-pandemic peaks and its performance below par compared to its European regional and global peers.
“There’s still massive economic risks mounting in the final months of the year and I think it’s going to be an interesting test, but the markets are only going to pull back so far before it generates interest once more and I think we’re now approaching that point,” said Craig Erlam, senior analyst at Oanda.
Britain’s auto sector (.FTNMX401010) dropped 1.4% after preliminary industry data showed new car registrations marked the weakest September for at least 23 years. read more
Melrose Industries (MRON.L) declined 2% after saying the global chip shortage led to a surge in monthly cancellations from its customers in the auto industry. read more
Reporting by Bansari Mayur Kamdar; Editing by Subhranshu Sahu and Sriraj Kalluvila
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