Retailers lead the way in London after industrials give up gains

High street retailers lifted London’s top indexes today despite a sharp drop in oil prices prompting investors to ditch industrial giants.

The capital’s premier FTSE 100 index climbed 0.86 per cent to reach 7,537.25 points, while the domestically-focused mid-cap FTSE 250 index surged two per cent to 21,491.97 points.

Traders are seemingly upbeat about the global economic recovery from the damage caused by the Covid-19 crisis still having legs despite experts downgrading growth projections for the year.

Data from the Bank of England today indicated UK consumers are keen to use their credit cards to spend despite prices rising at the fastest pace in 30 years, boosting sentiment toward retailers. 

Credit card spending jumped £1.5bn over the last month, although this may be partly driven by households using debt to plug budget gaps amid a tight cost of living crunch.

High street retailer JD Sports was among the best performers on the FTSE 100, advancing 5.6 per cent. A positive analyst note also prompted traders to snap up the firm’s shares.

Middle-class favourite and online supermarket Ocado supported gains, rising over seven per cent. 

B&Q owner Kingfisher jumped 4.05 per cent.

Miners and oil giants initially led the way in the City during early exchanges. 

But, progress in peace talks between Kyiv and Moscow eased predictions about energy flows being curbed by the conflict, putting downward pressure on oil and gas prices.

Oil giants Shell and BP finished 1.92 per cent and 2.51 per cent respectively lower. Shell was among the top risers in the morning.