(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* JD Sports jumps as co decides to split chairman and CEO
roles
* A.B. Foods gains on strong sales at Primark stores
* Royal Dutch Shell jumps on plans to exit JV with Exxon
Mobil
* FTSE 100 up 1.3%, FTSE 250 adds 1.1%
(Updates to close)
By Amal S
July 1 (Reuters) - London's FTSE 100 ended higher on
Thursday, marking its best session in nearly two months, as
gains in energy stocks and positive corporate updates helped
investors look past concerns over rising COVID-19 infections in
the UK.
The FTSE 100 climbed 1.25%, starting the second half
of the year on a strong note, with heavyweight energy stocks
and bank stocks leading the gains.
JD Sports Fashion gained 5.4% and was the index's top
gainer, after Britain's biggest sportswear retailer said it will
split long-time boss Peter Cowgill's role as executive chairman
and recruit a chief executive over the next year.
Meanwhile, food and clothing retailer Associated British
Foods Plc rose 4.8% to post its best session in over
four months, after third-quarter sales at its Primark fashion
stores, which reopened after COVID-19 lockdowns, came in ahead
of expectations in all markets.
The FTSE 100 has gained 10.3% so far this year, helped by
support from cheap interest rates and government stimulus.
However, it has largely underperformed the wider European market
as a recent jump in coronavirus cases raised concerns about the
pace of economic recovery.
However, Bank of England Governor Andrew Bailey said it was
important not to over-react to a rise in inflation that was
likely to prove temporary during Britain's economic recovery
from the COVID-19 crisis.
"Investors have clearly accepted the fact that these
inflation rates are being perceived as temporary. However, what
they don't fully appreciate is that inflation is actually coming
in 2022, the actual inflation not the rise in prices as the
results of opening up of economy," said Andrea Cicione, head of
strategy at TS Lombard.
Travel stocks gained 2.6%, as Prime Minister
Boris Johnson said he was confident Britons fully vaccinated
against COVID-19 would be able to travel abroad this
year.
The domestically focussed mid-cap index added 1.1%.
Among stocks, Royal Dutch Shell gained 2.9% on
plans to leave Aera, its California-based oil and gas-producing
joint venture with Exxon Mobil Corp, four people
familiar with the talks told Reuters.
(Reporting by Shashank Nayar and Amal S in Bengaluru; Editing
by Subhranshu Sahu and Jonathan Oatis)
