By Ambar Warrick
(Reuters) -British stocks rose on Tuesday as global risk sentiment improved after reports that Moscow was withdrawing some troops near Ukraine calmed fears of a potential Russian invasion, while positive data from AstraZeneca and strong earnings from mining company Glencore further lifted sentiment.
The blue-chip FTSE 100 ended 1.0% higher, while mid-cap stocks added 1.1%. Both indexes had slumped nearly 2% on Monday, after the United States warned that Russia could invade Ukraine at any moment.
Defensive sectors including healthcare and consumer staples were the top performers on Tuesday.
AstraZeneca jumped 5.8%, and was the biggest boost to the FTSE 100, after positive results from a late-stage trial on the drugmaker’s prostate cancer treatment.
Glencore and BHP Group, both firms announced large dividend payouts following recent strength in commodity prices.
Glencore shares rose 1.2%, while steep losses in iron prices weighed on BHP. Chinese iron ore prices slumped as traders feared a government crackdown after Beijing warned it would act against the spread of misinformation on prices. [IRONORE/]
Strong earnings have helped local stocks weather geopolitical tensions, as well as jitters over tightening monetary policy across the globe.
“Corporate earnings in Q4 remained strong despite a multitude of inflation headwinds. The reporting season will continue to provide support, with banks, energy/ materials showing particularly strong increases in earnings,” Elisa Belgacem, senior credit strategist at Generali Investments wrote in a note.
The FTSE 100 is one of the few major stock indexes trading positive this year, as its relatively low exposure to technology firms helped it sidestep a global rout in the sector.
(Reporting by Ambar Warrick and Amal S; Editing by Rashmi Aich and Shailesh Kuber)
