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FTSE 100 inches towards recent peak
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BP hits over three-year high
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FTSE 100 up 0.4%, FTSE 250 off 1.1%
(Updates to market close)
By Sruthi Shankar and Shashwat Chauhan
Feb 7 (Reuters) - UK's FTSE 100 closed higher on Tuesday
as bumper earnings from oil giant BP supported the
resources-heavy index, while global risk sentiment was subdued
ahead of U.S. Federal Reserve Chair's comments.
The blue-chip FTSE 100 rose 0.4% at close, inching
closer to the all-time high it hit last week.
Oil major BP soared 8.0% after it reported a record
profit of $28 billion in 2022 and increased its dividend by 10%,
in a sign of confidence as it scaled back plans to reduce oil
and gas output by 2030.
The stock was the top gainer on FTSE 100, closing at its
highest trading price in over three years.
Rival Shell also gained 2.4%, with both helping the
oil and gas index outperform the broader market
on Tuesday. Globally, investors were on edge as markets awaited U.S.
Federal Reserve Chair Jerome Powell's comments at 1740 GMT,
which will be closely monitored after a strong U.S. jobs report
dented risk appetite, which received a boost earlier last week
from largely dovish Fed comments.
"As long as we don't get an unexpected sharp (Fed) hike
upwards, markets will probably be okay this year," said Sharon
Bentley-Hamlyn, investment manager at Aubrey European Conviction
Strategy.
"We may not see a pivot this year, but we almost certainly
will next year."
While a surge in commodity prices and a weaker pound have
supported the commodity-heavy FTSE 100 so far this year,
Britain's gloomy economic outlook and elevated inflation have
weighed on the domestically focussed FTSE 250 index .
The midcap index lost more than 1% in broad-based declines.
Meanwhile, British Prime Minister Rishi Sunak reshuffled his cabinet on Tuesday, breaking up two departments to better suit his pledges to spur the economy. (Reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; editing by Uttaresh.V, Janane Venkatraman and Tomasz Janowski)
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