“After a lackluster session yesterday, it’s been a much more positive session for markets in Europe,” stated Michael Hewson, chief market analyst at CMC Markets UK, “although a poor performance from the basic resource sector is weighing on the FTSE 100.”
Banks led the FTSE 100 gainers with a 2.5 percent jump. At the same time, consumer staples such as British American Tobacco, Unilever, and Reckitt Benckiser Group climbed between 1.1 and 2.9 percent and were some of the top gainers. Mining shares sank 3.6 percent, while energy shares declined 0.8 percent, capping further gains.
The FTSE 250 industrial stocks were at the top of the charts. However, Quilter, a fund manager, fell 2.9 percent among individual equities after reporting lower quarterly assets under management.
CRH gained 5.9 percent, becoming the FTSE’s second-largest percentage gainer after the Irish construction materials supplier forecasted first-half group sales ahead of the previous year.
On Tuesday, the Japanese Nikkei 225 index closed in Asia with a 0.86% increase. The Shanghai Composite Index was down by 1.35%, while the Hang Seng index was also red by 0.40%. The ASX 200 ended the day with an increase of 0.05%.
The FTSE 100 had a solid day, but the advances were not convincing, as investors remain concerned about various issues.
These include the Russian-Ukrainian war and the IMF lowering its UK growth outlook.
On Tuesday, the International Monetary Fund reduced the UK’s growth forecast for 2022, anticipating a worldwide economic slowdown to 3.6 percent in 2022, down from 6.1 percent in 2021, noting economic fragmentation created by Russia’s invasion of Ukraine.
The IMF staff expects the UK’s economic growth to drop to 3.7 percent in 2022, down from 7.4 percent in 2021, before slowing further to 1.2 percent in 2023.
Concerns over the ongoing conflict in Ukraine and the threat of more restrictions on Russia’s exports continue to simmer in the background and might depress market sentiment even further.