By Devik Jain
(Reuters) -London’s FTSE 100 edged up on Wednesday, led by gains in defensive consumer staples stock as investors gauged developments around Russia-Ukraine crisis, while miner Rio Tinto hit the bottom of the index on downbeat earnings update.
The blue-chip index rose 0.2%, with CRH jumping 2.9% to the top of index after the Irish building materials supplier forecast first-half group sales ahead of prior year.
Tobacco firm British American Tobacco, Dove soap maker Unilever and personal goods maker Reckitt Benckiser Group gained between 1.1% and 2.1%.
Banks gained 1%, as UK’s 10-year gilt yield climbed above 2% for the first time since late 2015.
Rio Tinto fell 2.4% to the bottom of the index after the iron ore major posted lower-than-expected shipments in the first quarter and warned of risks from high inflation, COVID-19 lockdowns in China and a prolonged Russia-Ukraine war.
The mining index dipped 1.6%.
“The markets seem to be stuck in a bit of a holding pattern. They’ve absorbed the shock of Ukrainian conflict and seemingly shrugged it off, while also reacting calmly to an escalating cost of living crisis and new COVID disruption in China,” AJ Bell investment director Russ Mould said.
“It feels like something will have to give at some stage but when that might be and what the catalyst could be remains to be seen.”
Russia said it hit 1,053 Ukrainian military facilities overnight, while Western governments promised to give Ukraine more military help and impose new sanctions.
The domestically-focused midcap FTSE 250 index declined 0.2%, pulled down by fund manager Quilter, dropping 3.3%, after posting lower quarterly assets under management and administration.
SSE rose 2% after the power generator agreed to buy a portfolio of onshore wind development projects from Siemens Gamesa for 580 million euros ($626 million).
(Reporting by Devik Jain in Bengaluru; Editing by Rashmi Aich)
