LONDON: British stocks rose on Tuesday as global risk sentiment improved after reports that Moscow was withdrawing some troops near Ukraine calmed fears of a potential Russian invasion, while positive data from AstraZeneca and strong earnings from mining company Glencore further lifted sentiment.
The blue-chip FTSE 100 ended 1.0% higher, while mid-cap stocks added 1.1%. Both indexes had slumped nearly 2% on Monday, after the United States warned that Russia could invade Ukraine at any moment.
Defensive sectors including healthcare and consumer staples were the top performers on Tuesday.
AstraZeneca jumped 5.8%, and was the biggest boost to the FTSE 100, after positive results from a late-stage trial on the drugmaker’s prostate cancer treatment.
Glencore and BHP Group, both firms announced large dividend payouts following recent strength in commodity prices.
Glencore shares rose 1.2%, while steep losses in iron prices weighed on BHP. Chinese iron ore prices slumped as traders feared a government crackdown after Beijing warned it would act against the spread of misinformation on prices.
Strong earnings have helped local stocks weather geopolitical tensions, as well as jitters over tightening monetary policy across the globe.
“Corporate earnings in Q4 remained strong despite a multitude of inflation headwinds. The reporting season will continue to provide support, with banks, energy/ materials showing particularly strong increases in earnings,” Elisa Belgacem, senior credit strategist at Generali Investments wrote in a note.
The FTSE 100 is one of the few major stock indexes trading positive this year, as its relatively low exposure to technology firms helped it sidestep a global rout in the sector.
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