FTSE 100 close: Unilever helps London index squeeze out gains as traders eye Fed and ECB

London’s FTSE 100 has squeezed out gains in a busy day of company announcements ahead of the summer slow down.

The capital’s premier index edged 0.17 per cent higher to 7,691.81 points, while the domestically-focused mid-cap FTSE 250 index, which is a better reflection of the health of the UK economy, was broadly flat at 19,149.88 points.

Risk sentiment was seemingly muted in the City today, likely due to traders hunkering down before key US Federal Reserve and European Central Bank meetings on Wednesday and Thursday respectively.

Analysts expect both central banks to lift interest rates 25 basis points in what may be the last increase for each.

Asian shares rose sharply in overnight trading after Chinese authorities signalled they are prepared to ramp up government support to reverse slowing growth.

That indication gave FTSE 100-listed miners a boost, with Rio Tinto, Anglo American and Antofagasta all around four per cent. 

China is the globe’s biggest consumer of commodities, meaning an increase in demand in the world’s second largest economy should bump raw material producers’ income.

Consumer goods giant Unilever topped the FTSE 100, climbing 4.34 per cent after it posted a better than expected set of results this morning. Consumers have been willing to swallow Unilever’s price hikes, it said, raising its margins and prompting investors to pile into the Marmite maker.

Richard Hunter, head of markets at interactive investor, said: “The feared exodus of consumers following the price increases was also expected to hamper margins, but Unilever has reported that underlying operating margins have increased.”

Profits at Games Workshop jumped to around £170m. The owner of figurine maker Warhammer’s shares rose around 0.2 per cent.

The City is amid the final round of corporate results before the annual summer slowdown. Topping the billing is UK banks’ second quarter earnings season, which kicks off with Lloyds Bank tomorrow.

Pound sterling climbed 0.4 per cent against the US dollar, arresting its worst losing streak since March 2020. It is still up more than six per cent against the greenback so far this year.

Oil prices jumped just under one per cent.