Commodity-linked shares lift FTSE 100, AO World plummets on shortages warning



(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* European stocks hit by renewed fears around COVID-19

* River and Mercantile Group rises on two takeover approaches

* FTSE 100 up 0.3%, FTSE 250 off 0.7% (Updates to close)

By Bansari Mayur Kamdar

Nov 23 (Reuters) - UK's FTSE 100 rebounded to end higher on Tuesday as gains in mining and energy shares countered fears over a resurgence in COVID-19 cases in Europe, while online electricals retailer AO World plummeted after warning of product shortages.

After falling as much as 0.7%, the blue-chip FTSE 100 .FTSE ended 0.3% higher, aided by advances in miners including Rio Tinto RIO.L , BHP Group BHPB.L , Glencore GLEN.L and oil majors BP BP.L and Royal Dutch Shell RDSa.L .

However, investor sentiment was in check as continental Europe, where German .GDAXI and French .FCHI stocks were down on concerns about fresh restrictions amid a resurgence in COVID-19 cases.

"The fourth wave of COVID being endured in parts of Continental Europe is prompting the reintroduction of restrictions and resulting civil unrest, threatening its economic recovery," said Russ Mould, investment director at AJ Bell.

British minister Robert Courts said on Monday the UK was looking to review its COVID-19 travel rules in January.

Britain has lagged European peers in lifting travel restrictions with airlines complaining that the need for day-2 coronavirus tests and complicated passenger locator forms have deterred UK travel.

The FTSE 100 has advanced 11.6% so far this year, helped by robust corporate earnings and record low interest rates. However, it continues to underperform its European peers as supply chain constraints and inflationary worries weigh on businesses.

Meanwhile, euro zone business growth unexpectedly accelerated this month but another wave of coronavirus infections and new restrictions, alongside price pressures, are likely to put a dent in December's expansion, a survey showed.

The domestically focussed mid-cap index .FTMC declined 0.7%, with AO World AO.L plunging 15% after it cut its fiscal 2022 profit outlook due to supply chain issues and warned of product shortages ahead of the key holiday shopping season.

Shares of Compass Group CPG.L reversed early losses to end 6% higher after Chief Executive Dominic Blakemore said new business will help the British caterer regain its pre-pandemic size and grow faster than before.

In M&A news, fund manager River and Mercantile Group RIV.L surged 8% after saying it had received preliminary approaches from rivals Premier Miton Group PMIP.L and AssetCo Plc ASTO.L for a possible takeover.
Reporting by Bansari Mayur Kamdar and Amal S in Bengaluru; Editing by Subhranshu Sahu and Bernadette Baum

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.