The FTSE 100 and European stocks were mostly higher this Tuesday, with the UK’s benchmark hitting a two-month high, as oil stocks bounced back.
On Wall Street, stocks rose as traders looked past more China COVID lockdowns and instead focused on a host of strong earnings reports
The commodities-heavy FTSE 100 traded at its strongest level since September 13.
FTSE-listed AO World (AO.L) surged 16%, as the online electrical retailer forecast top-end full-year earnings despite reporting increased half year losses of £12m compared to £4m.
Founder and chief executive John Roberts said the firm's turnaround plan to strip out costs was paying off.
Meanwhile, Brent crude (BZ=F) bounced back to $89 a barrel after Saudi Arabia denied a report in the Wall Street Journal that oil producers were discussing a production increase for their next meeting, saying a cut approved last month would stay in place until the end of 2023.
"Saudi Arabia’s denial of the output increase contributed to a 12% round-trip in front-month Brent prices over the past 24 hours," Stephen Innes, managing partner at SPI Asset Management, said.
"It is possible that the suggestions to expand Opec+ production were floated to gauge the price reaction. The initial negative follow-through implies that demand concerns warrant a relatively modest increase in output if Opec+ is looking to stabilise prices once the EU embargo kicks in."
However, traders have to digest the news from the OECD saying that the UK is set to be second-worst performing major economy next year.
New: @OECD forecasts UK economy will contract by 0.4% next year (biggest fall in GDP in G7) and will grow by only 0.2% in 2024 (weakest growth in G7).
Covid+war in Ukraine+Brexit = slow growth - a serious problem. Governments which can’t raise living standards come unstuck. pic.twitter.com/jBVpPKSJTo
— Joel Hills (@ITVJoel) November 22, 2022
In Asia, Tokyo’s Nikkei 225 (^N225) rose 0.61% to finish at 28,115 while the Hang Seng (^HSI) in Hong Kong tumbled 0.95% to 17,488. The Shanghai Composite (000001.SS) finished in the green, gaining 0.13% to 3,088 points.
Watch: Fed is ‘very focused on the transmission rate’ of its monetary policy: Strategist