# FTSE 100 inches towards recent highs as BP shines
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-02-07
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: BP's Record Profit Boosts FTSE 100: Stock Market Update
Meta Description: FTSE 100 gains 0.5% on BP's record profit and energy stock surge, defying Fed rate concerns. European markets also up, led by BP's 3.7% jump.
URL: https://financedigest.com/ftse-100-inches-towards-recent-highs-as-bp-shineshtml

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By Sruthi Shankar

(Reuters) – UK’s FTSE 100 rose on Tuesday as bumper earnings from oil giant BP and a rally in energy stocks helped counter investor worries that the Federal Reserve will keep interest rates higher for longer.

The blue-chip FTSE 100 rose 0.5%, inching closer to the all-time high it hit last week.

European [stocks posted small gains after a weak opening as investors digested mixed earnings reports](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency") and data signalling resilience in the U.S. economy, which could offer more room for the [Fed to keep](https://www.financedigest.com/dollar-buoyant-as-robust-u-s-data-keep-fed-hawks-in-control.html "Dollar buoyant as robust U.S. data keep Fed hawks in control") hiking interest rates.

BP rose 3.7% after it reported a record profit of $28 billion in 2022 and increased its dividend by 10%, in a sign of confidence as it [scaled back](https://www.financedigest.com/mifid-ii-why-you-should-not-scale-back-your-implementation-efforts.html "MIFID II: WHY YOU SHOULD NOT SCALE BACK YOUR IMPLEMENTATION EFFORTS") plans to reduce oil and gas output by 2030.

The stock was the top gainer on FTSE 100, [set for its biggest percentage 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") in 11 weeks.

The company today suggests that by the end of the decade, the group could be earning EBITDA of $51 billion-$56 billion, with annualised growth of 12% in the [next three years,”](https://www.financedigest.com/novartis-to-spin-off-generics-business-sandoz-next-year.html "Novartis to spin off generics business Sandoz next year") said Steve Clayton, fund manager at Hargreaves Lansdown. If BP are right, this is a pretty unprecedented period of [sustained high financial](https://www.financedigest.com/cobots-in-the-financial-workplace-reducing-costs-attracting-talent-and-enhancing-sustainability.html "Cobots in the financial workplace: Reducing costs, attracting talent and enhancing sustainability") returns.

The wider oil & gas index jumped 1.8% as crude prices rallied nearly 2% on optimism over recovering demand in China and concerns over supply shortages following the shutdown of a major export terminal due to [earthquakes in Turkey](https://www.financedigest.com/eus-eib-to-override-turkey-lending-ban-with-earthquake-aid.html "EU’s EIB to override Turkey lending ban with earthquake aid"). \[O/R\]

While a [surge in commodity prices and a weaker pound have supported the FTSE](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") 100, worries about Britain’s gloomy economic outlook and elevated inflation have weighed on the domestically focussed FTSE 250 index.

The midcap index fell 0.3%, with Morgan Advanced Materials Plc [slumping 4.7% after the industrial firm gave downbeat earnings](https://www.financedigest.com/roche-flags-2023-earnings-decline-on-slump-in-covid-products.html "Roche flags 2023 earnings decline on slump in COVID products") forecast following a cyber security incident reported in January.

International [Distributions Services rose 0.7% after postal workers at its unit Royal Mail called off a planned 24-hour strike over pay](https://www.financedigest.com/best-paying-jobs-in-natural-gas-distribution.html "Best paying jobs in natural gas distribution") next week.

(Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V and Janane Venkatraman)


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