FTSE 100 rises on robust commodity stock gains

© Reuters. FILE PHOTO: British pound coins are seen in front of displayed stock graph in this illustration taken, November 9, 2021. REUTERS/Dado Ruvic/Illustration

(Reuters) -UK’s FTSE 100 rose on Wednesday, outpacing its European peers as shares of oil and mining giants got a boost from soaring commodity prices in the wake of the Ukraine crisis.

The commodity-heavy FTSE 100 rose 0.9% and the FTSE 250 midcap index added 1.3%, while a wider European equities gauge rose 0.4%.

Oil majors Shell (LON:RDSa) and BP (LON:BP) climbed 4.9% and 4.4%, respectively, as oil prices jumped about 5%, with Brent crude zooming past $110 a barrel for the first time since 2014. [O/R]

Global miners Rio Tinto (LON:RIO) and Glencore (LON:GLEN) also gained about 3% as metal prices, including nickel and aluminium rose, on increasing fears of supply disruptions. [MET/L]

While the FTSE 100 stood out on Wednesday, soaring crude oil prices are lowering the outlook for real economic growth and central banks can do little to address the situation, said Peter Garnry, head of equity strategy at Saxo Bank.

Bank of England policymaker Michael Saunders said on Tuesday the Ukraine crisis is likely to push Britain’s soaring inflation higher, but that it is too soon to determine the impact on monetary policy.

London-listed shares of Russia’s Sberbank plunged 91.9% after the European arm of Russia’s largest bank was forced to close.

Meanwhile, Russian gas company Gazprom (MCX:GAZP)’s UK-listed share plummeted 6.3%.

Russian gold and silver producer Polymetal rose 14.5% after shedding over 80% in the past two sessions. Polymetal, which is likely to drop out of the blue-chip FTSE 100, suspended its 2022 cost and capital expenditure guidance.

Persimmon (LON:PSN) Plc gained 5.9% after Britain’s second-largest homebuilder said it expected to build 4-7% more homes in 2022, riding on strong housing demand.