# Oil stocks thrust London shares to positive 2023 start Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-01-03 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: FTSE 100 Hits Seven-Month High on Oil Stocks Surge Meta Description: FTSE 100 surged as Shell and BP led the energy sector, with broader indices gaining. But warning signs of stagflation and global growth concerns loom. URL: https://financedigest.com/oil-stocks-thrust-london-shares-to-positive-2023-starthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-01-03t083933z1lynxmpej0205krtroptp4britain-stocks-1736814643848-compressed.jpg) By Shashwat Chauhan (Reuters) – UK’s exporter-heavy FTSE 100 jumped to a seven-month high on Tuesday as oil stocks rallied, with majors Shell and BP putting the broader energy sector on track for its biggest single day jump in six weeks. The blue chip FTSE 100 rose 2.2%, the more domestically-focussed FTSE 250 midcaps gained 2.0% to a more than three week high, while the energy sub index rose 4%. The pan-European STOXX 600 continued Monday’s gains, up 1.8%. I could see it carrying on for today,” said Giles Coghlan, chief market analyst at HYCM, but warned that the stock rally was not likely to last longer term because a majority of fund [managers were “really](https://www.financedigest.com/with-the-right-active-manager-you-really-do-get-what-you-pay-for.html "With the Right Active Manager, You Really Do Get What You Pay For") concerned about stagflation. 2023 would be a tough year as the main engines of global growth – the United States, Europe and China – all experience weakening activity, the [head of the International](https://www.financedigest.com/the-hidden-financial-woes-of-international-students-heading-for-the-uk.html "The Hidden Financial Woes of International Students Heading for the UK") Monetary Fund said on Sunday. Data on Tuesday showed China’s [factory activity](https://www.financedigest.com/asias-factory-activity-contracts-despite-chinas-covid-reopening.html "Asia’s factory activity contracts despite China’s COVID reopening") shrank at a sharper pace in December, while in the UK, manufacturers reported one of their sharpest falls in activity since the 2008-09 recession. The resources heavy FTSE 100 outperformed its local peers last year, gaining 0.9% against a 12.9% drop in the STOXX 600, thanks to an early rally in metals and oil ending its [second straight year](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row") in the green in 2022. [Cineworld slipped 8.1% after the British cinema operator said it would not sell any of its assets individually](https://www.financedigest.com/uks-cineworld-to-not-sell-assets-individually-denies-talks-with-amc.html "UK’s Cineworld to not sell assets individually, denies talks with AMC"), and that it had not held discussions with AMC Entertainment about the sale of any of its theatres. Rolls-Royce rose 6.1% after Jefferies raised the airplane engine [maker to “buy”](https://www.financedigest.com/sega-sammy-says-it-is-considering-buying-angry-birds-maker-rovio.html "Sega Sammy says it is considering buying Angry Birds maker Rovio") from “hold. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Nivedita Bhattacharjee) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---