Last checked at 
(Alliance News) - Stock prices in London were higher at midday on Wednesday as the FTSE 100's oil majors benefit from higher crude prices which have soared following Russia's invasion of Ukraine and the West's response.
Russian forces said they had captured a Ukrainian port on Wednesday as Russian and Ukrainian troops battled for another urban centre and President Volodymyr Zelensky said Moscow wanted to "erase" his country.
As the conflict intensified further on the seventh day of the invasion, the Russian army said it had taken control of the Black Sea port of Kherson in southern Ukraine.
Russian paratroopers also landed in Kharkiv, Ukraine's second-biggest city, triggering clashes in the streets, Ukrainian forces said.
The FTSE 100 index was up 65.36 points, or 0.9%, at 7,395.56. The mid-cap FTSE 250 index was up 248.22 points, or 1.2%, at 20,748.86. The AIM All-Share index was up 4.06 points, or 0.4%, at 1,031.33.
The Cboe UK 100 index was up 0.9% at 735.84. The Cboe 250 was up 1.2% at 18,418.49, and the Cboe Small Companies up 1.0% at 14,724.88.
In mainland Europe, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.1%.
"The FTSE 100 made its latest attempt at a rebound on Wednesday despite the ongoing conflict in Ukraine," says AJ Bell investment director Russ Mould. "Index heavyweights BP and Shell were markedly higher as oil prices moved to eight-year highs above USD110 per barrel."
Shell and BP were the best performers in the large-cap index, up 5.7% and 5.5% respectively.
Brent oil was quoted at USD110.45 a barrel Wednesday at midday, advancing from USD106.10 at the London equity market close on Tuesday. The North Sea benchmark rose above USD110 for the first time since 2014 and hit a high of USD113.02 overnight.
The rise in prices takes place ahead of a meeting of OPEC and other major producers, including Russia, later Wednesday.
Saudi Arabia, Russia and other top oil producers are expected to agree to hold firm on only gradually opening the taps, despite Russia's assault on Ukraine sending prices spiralling.
Persimmon was up 5.2% after the housebuilder made a strong recovery in 2021 from a lacklustre 2020.
The York, England-based housebuilder brought in total revenue for 2021 of GBP3.61 billion, up 8.4% year-on-year from GBP3.33 billion. This was only 1.4% short of pre-pandemic revenue of GBP3.66 billion in 2019.
Profit before tax grew 23% to GBP966.8 million from GBP783.8 million. Persimmon said this was due to increased in operating margin of 40 basis points, up to 28.0% from 27.6% the prior year, resulting from "disciplined cost control, combined with a positive pricing environment".
Persimmon proposed a 125 pence dividend per share to be paid in April, and 110p to be paid in July. This would bring the total for the year to 235p, unchanged from 2020.
Large-cap rivals Barratt Developments, Taylor Wimpey and Berkeley rose 4.7%, 4.4% and 2.7% respectively in a positive read-across. In the FTSE 250, Vistry was up 8.0%, as the homebuilder also reported a strong 2021 and reinstated dividends.
In the wider property sector, McKay Securities was up 30% after accepting a GBP272 million takeover offer from FTSE 250-listed Workspace, which was down 2.7%.
Polymetal International was up 1.8%. The Russian gold miner reported a fall in annual earnings due to higher costs, as the miner deals with the effects of sanctions on Russia after it invaded Ukraine last week.
Net earnings in 2021 fell 16% to USD904 million from USD1.07 billion in 2020. The fall in earnings was due to higher costs which hit operating profit, the company noted.
Looking ahead to 2022, despite uncertainty around inflation, interest rates and the global geopolitical situation, demand has stayed strong and interest rates favourable, leaving Persimmon in a strong position, the company said.
At the other end of the large-caps, Russia-focused stocks were once again the biggest fallers, with Evraz down 12% and Coca-Cola HBC down 5.8%.
Evraz and Polymetal International, down 86% and 80% in 2022 respectively, look set to drop out of the FTSE 100 after the shares have been clobbered following Russia's invasion of Ukraine. FTSE Russell will announce the changes after the market close on Wednesday.
The pound was quoted at USD1.3322 at midday on Wednesday, down from USD1.3334 at the London equities close Tuesday.
The euro was priced at USD1.1093, soft from USD1.1109. Against the safe-haven yen, the dollar was trading at JPY115.25, higher against JPY114.89.
The eurozone's annual inflation rate accelerated to fresh record levels in February, according to Eurostat.
On an annual basis, the consumer price index rose 5.8% in February, picking up pace from 5.1% in January according to a flash estimate. The latest reading was higher than the market forecast, cited by FXStreet, of 5.4% and remains substantially above the European Central Bank's 2.0% target.
In addition, it marked the fourth straight month in which the inflation rate hit a record high.
Gold stood at USD1,942.66 an ounce, higher against USD1,930.54 late Tuesday.
New York was pointed to a higher start as US President Joe Biden vowed in his first State of the Union address on Tuesday to check Moscow's aggression in Ukraine as he announced a ban on Russian planes in US airspace.
The Dow Jones Industrial Average was called up 0.6%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.8%, based on futures trading. The indices closed down 1.8%, 1.6% and 1.6% respectively on Tuesday.
Biden also noted the US was working to seize the yachts and apartments of Russian oligarchs, saying: "We are coming for your ill-begotten gains."
Biden, in remarks before Congress, highlighted the bravery of Ukrainian defenders and the resolve of a newly reinvigorated Western alliance that has worked to rearm the Ukrainian military and cripple Russia's economy through sanctions.
He warned of costs to the American economy, as well, but warned ominously that without consequences, Russian President Vladimir Putin's aggression would not be contained to Ukraine.
"Throughout our history we've learned this lesson - when dictators do not pay a price for their aggression, they cause more chaos," Biden said. "They keep moving. And the costs and threats to America and the world keep rising."
Also on Wednesday, US Federal Reserve Chair Jerome Powell heads to Capitol Hill for two days of congressional testimony which will be closely watched this week for an idea about the bank's outlook for montary policy ahead of its meeting later this month.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
