UK stocks edged higher on Tuesday morning with the FTSE 100 index backed by commodity stocks, led by companies like BP, which recently reported bumper profits. Energy companies that benefited from the continued spike in energy prices also contributed to the optimism.
European equities reflected the same sentiment, with the Euro Stoxx 50 advancing as investors regained hope for inflation to come under control as the European Central Bank came under increasing pressure to raise interest rates by the end of the month. the year.
Overnight in Asia, however, Hong Kong’s Hang Seng Index (.HK50) fell, as did the US S&P 500 Index (.US500).
What is interesting today: Bellway is up about 2.4% on a positive outlook as the company said it expects strong demand to continue. BP’s profits hit their highest level in 8 years after the company announced it would now focus more on low-carbon plans.
Why are stocks up today?
Energy companies soar as rising prices continue: Oil giant BP reported windfall profits as soaring energy prices continue.
- What does that mean: Rising energy prices, which have been a recurring theme in recent months, have recently intensified further due to Russian-Ukrainian tensions, with Russia being a major energy supplier. This led companies such as Shell and BP to see significant increases in profits, also reaching multi-year highs. The recent energy price cap imposed by Ofgem would also continue to make life easier for major suppliers by passing the costs on to consumers.
Scholarships: Key Highlights
- The FTSE 100 index (.UK100) edged up 0.47% to 7608.8 points
- The Euro Stoxx 50 index (.EU50) rose 0.18% to 4128.1 points
- The German DAX index (.DE40) edged up 0.15% to 15,229.8 points
- The French CAC 40 (.FR40) index rose 0.24% to 7026.2 points
- The main sectors in the UK were finance and communications
- US futures on the S&P 500 climbed 0.25% to $4,486.8
- The CBOE Volatility Index, or VIX (.VIX) – a measure of expected swings in US stocks – fell to 22.86
- The US dollar index climbed to $95.75
- The US 10-year bond yield index also rose to 1.960%
Top Stock Gainers in the UK and Europe
- The main UK equity gainers were St. James’ Place, BT Group and Rio Tinto
- St. James’ Place shares rallied after the company said its funds under management topped $200 billion
- BT Group shares were won after the company entered into exclusive talks with Discovery over a sports joint venture
- Rio Tinto shares rose after the company announced it was determined to change its toxic work culture with CEO Jakob Stausholm at the helm
- The best performing companies in Europe were Inditex, ING Group and AXA
- Inditex shares rallied after founder Amancio Ortega recently purchased Royal Bank of Toronto
- ING Group shares rose slightly after the bank was recently informed of the outcome of its Supervisory Review and Evaluation Process (SREP)
- AXA shares rose slightly after the company unveiled its new low-volatility green bond fund
Main losers from equities in the UK and Europe
- The worst performing companies in the UK were Airtel Africa, Ocado Group and DCC
- Airtel Africa shares fell following a sell-off of around 58 million shares
- Ocado Group shares suffered after falling around 12.1% following increased investment in the company
- DCC shares fell despite earning a ‘buy’ rating from a number of analysts
- The main stock market losers in Europe were BNP Paribas, Prosus and Adyen BV Parts Sociales
- BNP Paribas shares fell after the bank announced it would fund JLR retail
- Prosus shares fell following the company’s partnership with SoftBank and others to help ElasticRun join the unicorn club by providing approximately $300 million in funding
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The difference between trading assets and CFDs
The main difference between trading CFDs and trading assets, such as commodities and stocks, is that you do not own the underlying asset when trading a CFD.
You can always profit if the market moves in your favor or suffer a loss if it moves against you. However, with traditional trading, you enter into a contract to exchange legal ownership of individual stocks or commodities for cash, and you own them until you sell them again.
CFDs are leveraged products, which means that you only have to deposit a percentage of the total value of the CFD transaction to open a position. But with traditional trading, you buy the assets for the full amount. In the UK there is no stamp duty on CFD trading, but there is when you buy shares, for example.
CFDs attract overnight costs to hold trades (unless you are using 1-1 leverage), which makes them more suitable for short-term trading opportunities. Stocks and commodities are more normally bought and held longer. You might also pay a commission or brokerage fee when buying and selling assets directly and you would need a place to store them securely.
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