Off The Wire
Britain's FTSE rises as oil rally boosts index; Ocado drops 5%
June 21 (Reuters) - London's FTSE 100 index climbed on Tuesday, as a rally in crude prices saw energy stocks surge, while shares of Ocado plunged 5% after the online supermarket announced plans to boost its liquidity by more than $1 billion.
The gains amount to a 'relief rally' as concerns of a recession linger on, said David Madden, market analyst at Equiti Capital.
Investors also await UK consumer price data for May due on Wednesday, after the inflation rate in April was seen surging to a 40-year high. read more
CPI will take time to cool down, as there are a lot of reasons inflation is high, including costs of transportation, said Madden.
Britain's biggest rail strike in 30 years kicked off on Tuesday, as tens of thousands of staff walked out in a dispute over pay and jobs that could pave the way for widespread industrial action across the economy in the coming months. read more
Central banks around the world are looking to raise interest rates aggressively to tame soaring inflation, a sentiment underscored by the Bank of England's hike to 1.25% on June 16.
Ever since, banking stocks (.FTNMX301010), which tend to benefit from a higher interest-rate environment, have gained nearly 5%.
DS Smith (SMDS.L) edged 0.8% higher after the cardboard maker posted strong annual numbers.