The UK’s FTSE 100 rose by 0.7%, primarily driven by the energy sector as oil prices surged in anticipation of an OPEC+ meeting. The FTSE 250 also experienced growth, reaching new heights thanks to positive momentum from a variety of sectors.
Oil prices were a key factor in the FTSE 100’s performance, with the energy sector leading the charge. The FTSE 250, up 0.5%, reached its highest point since late October, reflecting renewed optimism in the market. Mining companies such as Rio Tinto, Antofagasta, and Glencore saw their shares rise by up to 2.1% as copper prices rebounded. EasyJet saw a notable increase of 4%, driven by upgraded brokerage targets, including one from Morgan Stanley. Marston’s shares jumped by 7% due to strong Christmas bookings and a 64.5% profit boost from healthy food and drink sales. SSP Group’s shares surged by 10.6% following a 23% profit increase, fuelled by strong performance in North America and the UK. Victrex PLC led the FTSE 250 with a remarkable 14% increase after its positive earnings report.
Despite the positive movements in several sectors, British retailers faced challenges. Weak sales in November and declining consumer confidence, partly due to shifts in Black Friday timing, raised concerns. In addition, geopolitical risks, such as political instability in France, have left investors cautious, as the potential impact on European markets remains a worry.
The growth in the FTSE 100 reflects a strong performance in energy stocks, signalling continued interest in traditional sectors amid rising oil prices. The FTSE 250’s broad-based gains show positive results across multiple sectors, with companies like EasyJet, Marston’s, and SSP Group making significant contributions to the market’s overall performance. As investors remain optimistic, the broader European market faces potential risks due to political instability, highlighting the need for caution and vigilance regarding geopolitical dynamics.
While the UK indices continue to show strength, developments in France and broader European concerns could soon have an impact on market trends.
Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.
