The FTSE 100 index in London rose on Wednesday, led by AstraZeneca and energy titans BP and Royal Dutch Shell. Simultaneously, Just Eat Takeaway.com was delisted due to Uber Eats’ decision to enter the German industry.
After India’s Serum Institute said it would market the AstraZeneca vaccine to private hospitals at $8/dose, the drugmaker AstraZeneca gained 1.7 % and was the top boost to the FTSE 100.
After Azerbaijan’s energy ministry said BP’s oil production was 5.9 million tonnes in the first quarter, the blue-chip index rose 0.5 %, with oil majors and adding 1.4 % and 1.2 %, respectively.
Meanwhile, traders expected that a rise in inflation in March would have little effect on monetary policy after data showed that British consumer price inflation increased to 0.7 % in March, while manufacturer prices increased by 1.9 %, the highest in nearly two years.
“The fact that inflation is expected to rise this year as the economic outlook is improving indicates no immediate need for the Bank of England to consider negative interest rates,” said James Smith, an economist at ING.
“The less exciting expansion story for 2022 indicates policymakers will be hesitant to tighten policy, which we do not expect to occur until 2023.”
The FTSE 100 has risen 6.7 % on expectations of a fast economic rebound from the pandemic-driven recession. Concerns that central banks will tighten monetary policy faster than expected in response to increasing inflation weigh on sentiment.
According to reports, British house prices grew at the fastest annual pace in more than six years in February, driving building and material stocks up 0.8 %.
After a media story about rival Uber Eats’ decision to launch a food delivery service in Germany, one of Just Eats’ most lucrative markets, Eat Takeaway.com, dropped 2.7 %.
After BetMGM, a U.S. joint venture with MGM Resorts, said it aimed for $1 billion in net sales in 2022, Entain increased 2.2 %.