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* Ocado, LSEG, Ferguson gain as brokerages raise share
ratings
* Gains in oil majors offset risk-off sentiment
* FTSE 100 up 0.2%, FTSE 250 off -0.5%
(Updates to close)
By Bansari Mayur Kamdar
Jan 5 (Reuters) - UK's blue-chip index extended gains for
the second straight session on Wednesday, as a rally in oil and
mining stocks helped counter early gloom amid concerns about
tighter U.S. monetary policy.
After falling as much as 0.2%, the FTSE 100 reversed
course to gain 0.2%, closing at its highest since February 2020,
While the domestically focussed mid-cap index fell
-0.5%.
Base metal miners rose 1.9% leading gains on
the index. Oil majors BP and Royal Dutch Shell
gained about 1.5%, extending gains from the previous session,
after OPEC+ producers stuck to an agreed output target rise for
February.
"Demand for oil has held up and is proving able to largely
withstand the latest coronavirus wave... suggesting a global
economy that is becoming more adept at dealing with the problems
caused by the virus," said Stuart Cole, macroeconomist at Equiti
Capital.
Prime Minister Boris Johnson said on Tuesday that England
could withstand a surge in COVID-19 infections without shutting
down the economy as Britain reported another record daily high
in cases, fuelled by the Omicron variant.
U.S. stocks were flat or down and Treasury yields largely
unchanged Wednesday morning following earlier gains to start the
new year and ahead of key Federal Reserve meeting minutes to be
released later in the day.
"Evidence of a more robust response being contemplated by
the FOMC (Federal Open Market Committee) could see equity
markets struggle a bit today," Cole added.
Some positive brokerage action offset losses on the FTSE
100.
London Stock Exchange Group gained 1.7% after
Citigroup upgraded its shares to "buy", while online grocer
Ocado and plumbing products distributor Ferguson
added 4.9% and 0.5%, respectively, following rating
upgrades by Berenberg.
(Reporting by Bansari Mayur Kamdar and Amal S in Bengaluru;
Editing by Shounak Dasgupta and Jonathan Oatis)
