By Sruthi Shankar
(Reuters) – UK’s FTSE 100 edged higher on Tuesday as Unilever surged after naming activist investor Nelson Peltz as a board member and oil stocks rallied on the back of a surge in crude prices, helping buck the gloom in broader European markets.
The blue-chip index gained 0.2%, hitting its strongest level in nearly six weeks.
Unilever’s shares jumped 6.9% after the consumer goods giant named billionaire activist Peltz to its board, heaping pressure on the company for a bigger revamp of strategy.
“Inviting Peltz in is only likely to ramp up the pressure on beleaguered CEO Alan Jope and we may now see the company advance plans to streamline the business and address governance concerns,” said Russ Mould, investment director at AJ Bell.
Oil majors such as Shell and BP rose more than 1% each, as Brent crude prices climbed to $123 per barrel, after the EU agreed to a partial ban on Russian oil. [O/R]
The region-wide STOXX 600 index slipped after data showed euro zone inflation hit another record high in May, challenging the European Central Bank view that gradual interest rate increases from July will be enough to tame stubbornly high price growth.
“Rising oil prices risk sapping the bullish momentum and U.S. Treasury yields have jumped in overnight trading, adding possible further headwinds,” said Peter Garnry, head of equity strategy at Saxo Bank.
Airlines such as Wizz Air, easyJet and British Airways owner IAG slid between 2.4% and 4.2% as higher crude prices signalled rising fuel costs.
The domestically focussed midcap index dropped 0.7%.
Discount retailer B&M tumbled 10.6% after it warned of lower profit margins this year as customers spend less on discretionary products due to the cost-of-living crisis.
(Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V and Sriraj Kalluvila)
