May 31 (Reuters) – The UK’s FTSE 100 rose on Tuesday as Unilever rallied after appointing activist investor Nelson Peltz as a board member and oil shares rose on a rise in crude prices, helping offset pessimism in broader European markets.
Unilever and oil stocks boost FTSE 100 amid inflation
The blue-chip index (.FTSE) gained 0.2%, hitting its strongest level in almost six weeks.
Shares of Unilever (ULVR.L) rose 6.9%
Shares of Unilever (ULVR.L) rose 6.9% after the consumer goods giant named billionaire activist Peltz to its board, mounting pressure on the company for further revamping of strategy. read more
“Inviting Peltz is likely to only add to the pressure on embattled CEO Alan Jope and we can now see the company moving forward with plans to streamline the business and address governance concerns,” said Russ Mould, chief investment officer at AJ Bell.
Oil majors Shell (SHEL.L) and BP (BP.L) rose more than 1% each as Brent crude prices jumped to $123 a barrel after the EU agreed to a partial oil ban. Russian.
The region-wide STOXX 600 (.STOXX) index fell after data displayed eurozone inflation hit another record high in May, defying the European Central Bank’s view that gradual interest rate increases at the beginning of July will be enough to control the stubbornly high growth of prices.
Rising oil prices risk undermining bullish momentum
“Rising oil prices risk undermining bullish momentum and US Treasury yields soared overnight, adding potential headwinds,” said Peter Garnry, chief strategist at Saxo Bank shares.
Airlines including British Airways owner IAG, Wizz Air (WIZZ.L), and Easyjet (EZJ fell between 2.4% and 4.2% as higher crude prices signaled a rise. in fuel costs.
The country-focused mid-cap index (.FTMC) fell 0.7%.
Discount retailer B&M (BMEB.L) slumped 10.6% after warning of lower profit margins this year as customers spend less on discretionary goods due to the cost of living crisis.
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This post was last modified on May 31, 2022 1:32 pm