After initial positivity was tempered, London stocks edged higher amid the Chancellor’s announcement of a multi-billion funding package for high-street companies.
After a buoyant start to 2021, after the Prime Minister’s announcement of the third English lockdown on Monday evening, trading mood dimmed significantly.
At the close of trade, the FTSE 100 finished Tuesday’s trading session 40.37, or 0.61 percent, higher at 6,612.25 points.
Connor Campbell, Spreadex financial analyst, said, “The FTSE was in a curious position. As the session progressed, the early gains it made were eroded. A question mark hangs over the impact on the UK retail and hospitality sectors of the £ 4.6 billion aid package from Rishi Sunak.”
The fact that the FTSE is worse off than it was at the beginning of the session shows some discontent with the steps, but not enough to drive the U.K. aggressively. Negative territory index.
Elsewhere in Europe, as worries about increasing case numbers weighed on sentiment during the session, other major markets closed lower.
The Dax of Germany was 0.55% lower and the Cac of France moved 0.44 percent lower.
The Dow Jones opened slightly higher in the U.S. as traders awaited the results of the Georgia Senate’s two-way race, which would decide whether Republicans or Democrats will dominate the upper house.
The announcement of £ 4.6 billion in financial aid, meanwhile, helped the pound make modest gains after it slumped sharply in the session on Monday.
The pound was up 0.47 percent at 1.363 against the U.S. dollar and up 0.1 percent at 1.109 against the euro.
Next shot to the top of the FTSE in corporate news after the apparel retailer said that festive sales were higher than expected.
At the close of trade, shares in the retailer rose 556 pence to 7,468 pence.
Elsewhere, Morrisons shares dropped marginally, but in the last three weeks, including the main Christmas period, the retail chain said profits were up 9.3 percent compared to the same period last year. Shares fell 1.25p to 179.85p.
After announcing a special dividend of 13.2 cents, mining and energy firm Ferrexpo reached a 33-month high. Shares ended 16p higher at 312.2p.
After a wide rally in oil prices, shares in BP and Royal Dutch Shell gained after OPEC+ agreed modest production increases for Russia and Kazakhstan.
Brent crude oil prices increased by 0.5 percent to $53.13 a barrel.
In the FTSE 100, the biggest winners were Next, up 556 pence to 7,468 pence; BP, up 18 pence to 272.5 pence; Aveva, up 231 pence to 3,506 pence; Shell ‘A’, up 89.4 pence to 1,391.6 pence; and Shell ‘B’, up 79 pence to 1,337.6 pence.
Smurfit Kappa, down 120 pence to 3,462 pence, WPP, down 20 pence to 777 pence, London Stock Exchange, down 226 pence to 9,036 pence, Experian, down 59 pence to 2,850 pence, and Natwest, down 2.75 pence to 156.05 pence, were the main losers in the FTSE 100.