British stocks rebounded on Wednesday morning after the United States and Britain announced they would ban imports of Russian crude oil, in another attempt to toughen sanctions on Russia after its invasion of Ukraine . Investor sentiment has also improved significantly as M&G continues to top the FTSE 100 index thanks to its robust share buyback programme.
European equities reflected the same optimistic sentiment, with the EURO STOXX 50 index rising, while energy stocks were boosted by the recent sanctions. Investors were concerned, however, that oil could soon reach much higher levels, with speculation that it could reach $200 a barrel.
Night in Asia, in Hong Kong Hang Seng Index plunged, just like the United States S&P 500 Index.
What is interesting today: Prudential reported a jump of around 16% in operating profit, following strong new insurance sales, but the company stressed the likelihood that the conflict in Ukraine will affect sales in the short term. In addition, 888 Holdings also announced that its pre-tax profit for 2021 tripled as the gambling sector in Europe remained strong.
Why are stocks up today?
Gathering energy values: Energy stocks received a significant boost on Tuesday after Britain and the United States announced they would ban imports of Russian oil.
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- What does that mean: With the number of sanctions against Russia rapidly increasing following its invasion of Ukraine, investors had long expected an imminent ban on Russian oil. Therefore, the move has rekindled hopes that Russia may choose to tone down its moves in Ukraine and open up a more diplomatic path. However, it has also led to fears that oil could rise above $200 a barrel in the near future as supplies tighten significantly.
Scholarships: Key Highlights
- the FTSE 100 Index rose 1.63% to 7077.9 points
- the EURO STOXX 50 index climbed 4.80% to 3673.4 points
- germany DAX index edged up 4.86% to 13,455.7 points
- France CAC 40 index rose 4.58% to 6236.3 points
- The main sectors in the UK were finance and mining, while consumer services and producer manufacturing took a hit
- US S&P 500 futures rose 1.60% to $4,235.5.
- The Cboe Volatility Index, or VIXa measure of expected swings in US stocks, fell to 32.86
- The US dollar index fell to $99.12
- The yield on US 10-year bonds reached 1.911.
Main buyers: United Kingdom and Europe
- The main UK equity gainers were the London Stock Exchange Group (LSE), Fresnillo (FRES) and M&G (MNG)
- London Stock Exchange Group shares rallied after the company recently bought fintech company TORA for around $325m (£247m)
- Fresnillo’s stock rallied after the company reported a 3% profit hike for 2021
- M&G shares edged higher following the company’s announcement of a roughly £500m share buyback program
- The best performing companies in Europe were Inditex, Deutsche Post (DPW) and Adidas (ADSGN)
- Inditex shares edged higher after the company announced it was temporarily halting business operations in Russia
- Deutsche Post shares climbed after the company announced it would now focus more on machine learning
- Shares of Adidas gained after the company let go of its China chief after sales suffered due to a consumer boycott.
Main losers in equities: UK and Europe
- The worst performing companies in the UK were Polymetal International (POLY), Evraz (EVRgb) and ITV (ITV)
- Polymetal International shares fell following the company’s recent loss of some directors and key board members
- Evraz shares fell after the company announced it would drop from the FTSE 100 index by the end of March
- The main equity losers in Europe were AB InBev (BUD), Danone (BN) and Kone
- AB InBev shares fell slightly despite the company recently posting higher sales for the past year
- Danone shares fell following the company’s recent announcement of a new strategic plan.