FTSE 100 climbs as commodity, homebuilders’ shares rise

(Reuters) – London’s FTSE 100 rose on Tuesday after a three-day selloff as commodity and homebuilder stocks rose, while shares in HSBC Holdings (LON:HSBA) and Associated British Foods (LON:ABF) slid after their earnings updates.

The blue-chip index rose 0.7%, after closing at its lowest level since March 18 on Monday.

Oil majors BP (LON:BP) and Shell (LON:RDSa) rose 1.7% and 1.5%, respectively, tracking a rebound in crude prices. [O/R]

Among miners, Glencore (LON:GLEN) led gains with a 1.4% rise after Barclays (LON:BARC) raised the stock’s price target.

The domestically focused midcap FTSE 250 index advanced 0.6%.

HSBC Holdings fell 2.1% after Europe’s biggest bank warned that more share buybacks were unlikely this year as rising inflation and economic weakness had dented its prospects.

Shares in its Asia-focused peer Standard Chartered (LON:STAN) were flat, while lender Barclays gained 1% ahead of their results this week.

Associated British Foods slid 6.2% after it reported first-half profit nearly doubled, while flagging its Primark clothing business would have to raise prices because of severe inflationary pressure.

Taylor Wimpey (LON:TW) jumped 3.3% after the country’s third-largest homebuilder forecast sustained demand in an under-supplied market.