UK stocks edge higher, M&S slips on bleak outlook – Reuters

The offices of the London Stock Exchange Group are seen in the City of London, Britain December 29, 2017. REUTERS/Toby Melville

May 25 (Reuters) – British stocks edged higher on Wednesday as global sentiment stabilized after a previous bruising session, while Marks & Spencer slipped on a warning that rising cost pressures and l economic uncertainty would weigh on its outlook.

The blue-chip FTSE 100 index (.FTSE) rose 0.4%, with commodity majors providing the biggest boost.

Glencore Plc (GLEN.L) gained 2.7% after the global miner said it planned to pay up to $1.5 billion to settle corruption and market manipulation charges. Read more

Electricity company SSE Plc (SSE.L) climbed 4.6% after reporting an increase in annual profits and saying it was investing far more than it earned in profits to help reduce its dependence on electricity. imported gas. Read more

Its stock fell nearly 8% on Tuesday, hit by a report that the UK government is planning windfall taxes on power generators. Read more

Retailer Marks & Spencer (MKS.L) fell 0.3% after hitting its lowest level since December earlier in the session. The company joined rivals in warning about the outlook for the current year and said it would pull out of Russia. Read more

Supermarket and online technology group Ocado Group (OCDO.L) fell 4.2% after Ocado Retail slashed its growth outlook in a move that also put pressure on shares of rival chains Sainsbury’s (SBRY.L) and Tesco (TSCO.L). Read more

“Ocado is going to struggle because its costs are disproportionately based on transportation and logistics compared to a traditional retailer,” said David Madden, market analyst at Equiti Capital.

“Costs are likely increasing at a higher rate than they are increasing end-consumer prices, and their margin is going to be squeezed.”

The mid-cap index (.FTMC) rose 0.2% as pet supplies retailer Pets at Home (PETSP.L) outpaced gains with an 8.3% jump after reporting results annual. Read more

Overall, a surge in commodity prices has helped the heavily commodity-biased FTSE 100 outperform in 2022, although growing concerns about a recession have caused the national mid-cap index to fall further. 15% this year.

Reporting by Sruthi Shankar in Bengaluru; edited by Uttaresh.V and Aditya Soni

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