# Consumer staples, banks lift UK’s FTSE 100 after sharp selloff
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-10
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: FTSE 100 Rises as Bank and Consumer Stocks Boosted
Meta Description: FTSE 100 rises, with banking and consumer staples stocks leading the charge, after recent selloffs due to recession fears and COVID-19 lockdowns in China.
URL: https://financedigest.com/consumer-staples-banks-lift-uks-ftse-100-after-sharp-selloffhtml

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By Bansari Mayur Kamdar

(Reuters) – UK’s FTSE 100 rose on Tuesday, boosted by consumer staples and banking stocks, a day after worries around growing recession risks, higher interest rates, and extended COVID-19 lockdowns in China triggered a bruising selloff on the blue-chip index.

The FTSE 100 index climbed 0.7% in morning trade, after falling more than 1.5% each in the past two sessions.

[Banking stocks](https://www.financedigest.com/asian-stocks-rally-as-bank-jitters-calm-alibaba-lifts-mood.html "Asian stocks rally as bank jitters calm, Alibaba lifts mood") jumped 1.7%, after declining more than 2% in the previous session on global economic growth concerns.

Consumer staples [stocks like Unilever and British](https://www.financedigest.com/looks-arent-everything-british-supermarkets-to-stock-misshapen-fruit-amid-drought.html "Looks aren’t everything – British supermarkets to stock misshapen fruit amid drought") American Tobacco rose nearly 1.5% each in defensive trade.

Britain’s blue-chip [FTSE 100 index has outperformed its domestically focussed mid-cap counterpart so far this year due to its internationally-focussed makeup and as commodity stocks tracked oil and metal prices higher](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").

The FTSE 100 is full of [big oil](https://www.financedigest.com/big-oil-doubles-profits-in-blockbuster-2022.html "Big Oil doubles profits in blockbuster 2022"), big miners, commodity giants, and those massive multinational companies. These companies like Unilever have a huge amount of [pricing power](https://www.financedigest.com/belgium-supports-energy-price-caps-suspending-trading-in-eu-power-crunch.html "Belgium supports energy price caps, suspending trading in EU power crunch"), so they are able to pass costs on to the consumer,” said Danni Hewson, a financial analyst at AJ Bell.

Mid-caps don’t have the same kind of power and are not as able to pass on the [pain of rising](https://www.financedigest.com/analysis-rate-rises-pile-pain-on-sme-firms-in-u-s-and-europe.html "Analysis-Rate rises pile pain on SME firms in U.S. and Europe") costs to their consumer.

![](https://www.globalbankingandfinance.com/wp-content/uploads/2022/05/FTSEFTMC.jpg)

Data showed British shoppers, feeling the [hit from surging](https://www.financedigest.com/londons-ftse-100-hits-fresh-record-high-as-telecoms-surge.html "London’s FTSE 100 hits fresh record high as telecoms surge") inflation, cut their spending for the first time since early 2021 when the country was under a coronavirus lockdown.

After five days of heavy selling, the FTSE 250 [bounced back](https://www.financedigest.com/biotech-stocks-pin-bounce-back-hopes-on-ma-boost.html "Biotech stocks pin bounce back hopes on M&A boost") 1.0%.

London’s Heathrow increased its passenger 2022 forecast by 16% to nearly 53 million, driven by outbound holidaymakers. That helped travel and leisure [stocks jump](https://www.financedigest.com/dollar-jumps-u-s-stocks-buck-global-rally.html "Dollar jumps, U.S. stocks buck global rally") 1.1%.

Among individual movers, Renishaw Plc slid 0.8% as the engineering firm lowered its annual [profit forecast over uncertainties in global trade and warned](https://www.financedigest.com/bootmaker-dr-martens-warns-on-profit-as-finance-chief-walks.html "Bootmaker Dr Martens warns on profit as finance chief walks") of potential disruption to its business from COVID-19 lockdowns in China.

(Reporting by Bansari Mayur Kamdar in Bengaluru; editing by Uttaresh.V)


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