Commodity stock gains help FTSE stay above water

Market report

Robust commodity stocks and rebounding oil prices kept the FTSE positive on a turbulent day for the markets.

Tuesday’s jump across European markets turned shaky as trading scepticism grew over claims that Russia would scale back its military operations in Kyiv and other Ukrainian cities.

The FTSE 100 ended the day up 41.5 points, or 0.55%, at 7,578.75 points.

Europe’s other major markets were more impacted by the caution, with French stocks swinging lower as the optimism which drove a sharp increase earlier this week swiftly fading.

The Cac was down 0.74% and the German Dax increased 0.22% by the end of the session.

Stocks in Europe are retreating this afternoon as investors worry about rising energy costs that will hit consumers hard,’’ commented Chris Beauchamp,

chief market analyst at IG.

While the FTSE 100 has escaped the losses so far today, with UK bills set to head in the same direction there are big questions about whether economies across the continent will be able to avoid a recession.

Once again rising commodity prices have been the sticking plaster for the FTSE, masking losses across most of the rest of the index.’’

In the US, four days of straight gains came to an end as wavering sentiment led to marginal declines on the opening bell.

Meanwhile, sterling dropped after Bank of England deputy governor Ben Broadbent warned Britain is likely to be facing the worst ever external hit to national income from inflation amid the Ukraine conflict.

The pound decreased by 0.16% against the dollar to 1.315, and fell 0.1% against the euro to 1.178.

In company news, Pearson sat at the foot of the FTSE after private equity giant Apollo dropped its takeover pursuit of the educational publisher.

Apollo said it would not make another offer after Pearson’s board rejected a third bid, worth around £7.2 billion, describing the move as significantly’’ undervaluing the company.

Shares in Pearson were 46.6p lower at 739.2p at the close of play.

Harry Potter publisher Bloomsbury had a strong performance after soaring sales of the new novel by fantasy author Sarah Maas helped put it on track for better than expected profits.

The company increased its profit outlook for the second time in just over two months as it also overcame printing supply challenges.