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* FTSE 100 up 2.3%, FTSE 250 adds 1.2%
* UK inflation drops as shoppers turn cautious
* Drax jumps after reaffirming 2020 core profit outlook
* Boohoo climbs as sales recover after downtrend
(Updates to close)
By Devik Jain and Sruthi Shankar
April 22 (Reuters) - Britain's FTSE 100 gained on Wednesday
as a 6% rally in energy majors BP and Royal Dutch Shell and
positive corporate updates injected calm into equity markets
after an oil-driven rout.
The commodity-heavy FTSE 100 outperformed its
European peers, closing 2.3% higher after cratering oil prices
knocked 3% off the index on Tuesday.
After falling to its lowest since 1999 earlier in the
session, Brent crude prices made up some ground on the
prospect of extra pledges from major producers to cut output
amid plunging oil demand due to the coronavirus crisis.
The FTSE oil & gas index rose 5.5%, while other
cyclical sectors such miners, banks and insurers were all
higher.
"A much-needed rebound from Brent Crude allowed the Western
indices to hold onto their growth," said Connor Campbell,
financial analyst at SpreadEx.
UK-listed shares of Irish building group CRH
jumped 6.7% as it said it hoped to benefit from post-coronavirus
economic stimulus, and that it would press ahead with a 15% rise
in its 2019 dividend.
Online fashion retailer BooHoo surged 12.3% after
it said sales had recovered in recent weeks after taking a hit
in March due to the coronavirus crisis.
Bohoo's shares have surged by about 130% since mid-March
lows, taking its market value to almost double that of Marks and
Spencer.
Domestically oriented midcap shares rose 1.2%, with
power producer Drax Group soaring 16% after reaffirming
its 2020 core profit outlook and saying it expects to pay its
2019 dividend despite the hit from the pandemic..
Copper miner Antofagasta rose 6.3% after it posted
4.6% rise in March-quarter production.
Student housing specialist Unite Group rose 4.2% on
expectations of a smaller-than-expected drop in income.
The FTSE 100 has recovered about 17% from March lows as
central banks and governments took unprecedented steps to shield
the global economy.
However, analysts are sceptical of further gains, with
latest Refinitiv forecasts showing companies listed on the
pan-European STOXX 600 index set to record a 37%
decline in earnings in the second quarter. First-quarter profits
are expected to decline about 25%.
Data showed Britain's inflation rate dropped in March when
oil prices tumbled and the health crisis escalated, with a fall
in clothing and footwear prices indicating how cautious shoppers
were turning.
Investors are waiting for business activity readings from
across the world on Thursday, which are likely to show economic
activity slumped sharply in April.
(Reporting by Devik Jain and Sruthi Shankar in Bengaluru;
Editing by Sriraj Kalluvila and Arun Koyyur and Kirsten Donovan)
