# Banks, oil majors lift British shares higher
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-30
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: FTSE 100 Rebounds as Banks and Energy Stocks Surge Amid
Meta Description: FTSE 100 index up 0.6% on banks and energy stock recovery post selloff. Trends, updates on oil majors, rate-sensitive banks, and more. Stay informed!
URL: https://financedigest.com/banks-oil-majors-lift-british-shares-higherhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-30t071457z1lynxmpei7t076rtroptp4britain-stocks-1736815333908-compressed.jpg)

By Bansari Mayur Kamdar and Johann M Cherian

(Reuters) -UK’s FTSE 100 reversed early losses on Tuesday, as banks and energy stocks bounced back after a rough selloff in the blue-chip index last week on fears more aggressive interest rate hikes from central banks may lead to a global economic slowdown.

The FTSE 100 index was up 0.6%, as of 0801 GMT, and on track for its best performance in a month.

It’s a bit of a buying after some [selling conditions triggered by Jackson Hole and Powell’s comments at the end of last week,”](https://www.financedigest.com/this-is-the-best-week-for-cash-savvy-iphone-fans-to-sell-their-6s-models.html "This is the best week for cash-savvy iPhone fans to sell their 6s models") said Patrick Armstrong, CIO at Plurimi Wealth.

The UK market was [closed on Monday for the August bank](https://www.financedigest.com/banking-stability-worries-go-behind-closed-doors-at-imf-world-bank-meetings.html "Banking stability worries go behind closed doors at IMF-World Bank meetings") holiday and is playing catch-up to European and U.S. markets, which got off to a negative start to the week after Federal Reserve Chair Jerome [Powell on Friday cautioned against expecting a swift undoing of its rate](https://www.financedigest.com/dollar-jumps-as-powell-flags-higher-terminal-rate.html "Dollar jumps as Powell flags higher terminal rate") tightening.

Lifting the resource-heavy FTSE 100, [oil majors BP and Shell gained](https://www.financedigest.com/oil-prices-stable-heading-for-weekly-gain.html "Oil prices stable, heading for weekly gain") 2% each. Energy stocks are the top performers so far this year in the [FTSE 100 and on track for their fourth straight weekly gain](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain") as oil prices surged. \[O/R\]

Rate-sensitive banks advanced 2.4%.

They’re trading below tangible book value, which has historically been a good [time to buy the banks,”](https://www.financedigest.com/stock-pickers-reckon-its-time-to-move-on-from-central-banks.html "Stock pickers reckon it’s time to move on from central banks") said Armstrong.

Meanwhile, British two-year government [bond yields](https://www.financedigest.com/stocks-fall-bond-yields-rise-as-focus-shifts-to-fed-rate-outlook.html "Stocks fall, bond yields rise as focus shifts to Fed, rate outlook") briefly leapt by as much as 25 basis points to their highest since October 2008 at 3.072%.

The domestically focussed mid-cap index added 0.6%, with financial and industrial [stocks boosting gains](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks").

Shares of Bunzl Plc fell 4.3% even as the [British business supplies distributor raised its 2022 group](https://www.financedigest.com/crown-agents-bank-owner-explores-sale-of-british-payments-group-sources.html "Crown Agents Bank owner explores sale of British payments group –sources") operating margin outlook.

Although it raised its operating margin outlook, it is still expected to fall in the full year versus 2021,” said Victoria Scholar, [head of investment](https://www.financedigest.com/hsbc-appoints-new-markets-head-amid-wider-investment-bank-reshuffle.html "HSBC appoints new markets head amid wider investment bank reshuffle") at Interactive Investor.

Data showed Britain’s services [businesses reported a record increase](https://www.financedigest.com/frances-ynsect-to-refocus-bug-business-after-capital-increase.html "France’s Ynsect to refocus bug business after capital increase") in costs over the past three months and are downbeat about the future, as inflationary headwinds look set to squeeze demand further.

(Reporting by Bansari Mayur Kamdar and Johann M. Cherian in Bengaluru; Editing by Krishna Chandra Eluri and Sherry Jacob-Phillips)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---