FTSE 100 rises on boost from BP, Shell; Just Eat Takeaway slumps

The BP logo is reflected in a car window at a petrol station in London January 15, 2015. — Reuters pic

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LONDON, April 21 — London’s FTSE 100 rose today, rebounding from a 2 per cent fall in the previous session, as commodity stocks gained, while shares of Just Eat Takeaway.com slipped to the bottom of the index following Uber Eats’ plan to foray into the German market.

The blue-chip index rose 0.6 per cent, with oil majors BP Plc and Royal Dutch Shell adding 2.0 per cent and 1.7 per cent, respectively, after Azerbaijan’s energy ministry said BP’s oil output was 5.9 million tonnes in the first quarter.

The domestically focussed mid-cap FTSE 250 index added 0.3 per cent.

Just Eat Takeaway.com fell 4.2 per cent after a media report about rival Uber Eats’ plan to start a food delivery service in Germany.

Markets appeared to shrug off data that showed British consumer price inflation rose to 0.7 per cent in March, reflecting higher fuel and clothing prices, while prices charged by manufacturers rose by 1.9 per cent in the year to March, the highest in nearly two years.

The Bank of England had forecast in February that inflation would reach 1.9 per cent by the end of 2021 but many economists now expect it will exceed its 2 per cent target before then.

“For the Bank of England... the fact that inflation is likely to rise this year while the economic outlook is improving suggests little imminent need to look at negative interest rates,” said James Smith, an economist at ING.

“However, the less exciting inflation story for 2022 suggests policymakers will be in little rush to tighten policy, which we don’t expect to happen before 2023.”

The FTSE 100 has gained 6.7 per cent year-to-date on optimism about a speedy economic recovery from the pandemic-driven recession, although sentiment has been dented on concerns that central banks would tighten monetary policy sooner than expected on prospects of rising inflation.

Among other stocks, generic medicine maker Hikma Pharmaceuticals gained 2.6 per cent after US resumption of generic drug Advair.

British Airways owner IAG jumped 3.4 per cent to the top of FTSE 100 index, after a more than 8 per cent fall in the previous session, as Barclays raised its price target on the stock. — Reuters

Source: Malay Mail