LONDON, July 23 — London’s FTSE 100 rose today as an upbeat quarterly earnings report by Unilever bolstered optimism about a post-pandemic corporate rebound, helping investors look past an escalation in US-China tensions.
A 7.9 per cent jump took Anglo-Dutch Unilever back to levels not seen since the coronavirus-driven crash earlier this year, as it said a strong performance in North America helped offset the hit from widespread lockdowns.
The blue-chip FTSE 100 was up 1.1 per cent, with the world’s biggest advertising firm, WPP, also among the top gainers after a strong quarterly showing by French rival Publicis Groupe SA.
The mid-cap FTSE 250 rose 0.3 per cent, led by consumer staples, materials and industrial stocks.
“Business resilience is a much sought-after attribute in the current economic climate and Unilever has certainly got the right ingredients,” said Russ Mould, investment director at AJ Bell.
A raft of global stimulus, improving economic data and hopes of a Covid-19 vaccine have put UK stock indexes on track for their fourth straight month of gains, but analysts warn that a resurgence in US-China tensions could cap further gains.
Asian equity markets were weaker earlier in the day following Washington’s order to Beijing to close its consulate in Houston, Texas amid accusations of spying.
“The geopolitical disquiet is currently poking the hornet’s nest and ... further provocations will force traders exposed to risk assets like stocks to pare some exposure,” said Stephen Innes, markets strategist at AxiCorp.
Security contractor G4S rose 6 per cent to the top of the FTSE 250 after reporting a higher-than-expected first-half operating profit.
But Relx tumbled 3.1 per cent to the bottom of the FTSE 100 as its posted a 10 per cent fall in first-half revenue with the Covid-19 pandemic forcing countries to halt public events and gatherings. — Reuters
