BP’s strong performance boosted UK equities on Tuesday, while Bank of England Governor Andrew Bailey’s comments on financial stability boosted lenders.
In a speech, Bailey said UK banks were robust despite global banking system difficulties, but interest rate-setters will continue to battle inflation.
Traders considered increased interest rates, and the pound rose 0.3%.
By 0718 GMT, the blue-chip FTSE 100 (.FTSE) increased 0.6%, and FTSE 250 (.FTMC) up 0.2%.
BP (BP.L) rose 1.9% after BP and Abu Dhabi National Oil Co (ADNOC) [RIC:RIC: ADNOC.UL] offered $4 billion to jointly purchase 50% of Israeli offshore natural gas producer NewMed Energy (NWMDp.TA).
Energy (.FTNMX601010) increased by 1.6%.
When Ocado Retail, a joint venture between the businesses, kept its annual projection and reported higher first-quarter sales, Ocado Group (OCDO.L) and Marks & Spencer (MKS.L) rose 2.4% and 2.2%, respectively.
