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London’s top stocks swung higher on Tuesday, amid a boost from Shell’s (SHEL.L) fresh strategy update.
The oil major lifted after it set out five-year plans to ramp up cost savings and cut spending as it pledged to “deliver more value with less emissions”.
It said it would now look to strip out a cumulative five billion US dollars to seven billion US dollars (£3.9 billion to £5.4 billion) a year by the end of 2028.
Shell shares closed 1.5% higher at 2,765p after the update was welcomed by shareholders.
It helped to push London’s top index into the green despite weakness in the retail sector.
The FTSE 100 (^FTSE) finished 25.79 points, or 0.3%, higher to end the day at 8,663.8.
Elsewhere in Europe, sentiment was also broadly positive as a lack of fresh news regarding tariffs helped to calm the markets and drive more buying activity.
The Cac 40 (^FCHI) ended 1.08% higher for the day and the Dax (^GDAXI) index was up 1.1%.
In the US, the Dow Jones (^DJI) rose slightly after strong gains in Monday’s trading session.
Chris Beauchamp, chief market analyst at IG, said: “Risk appetite continues to recover on Wall Street, while signs of progress in peace talks have pressured oil prices.
“Trading in recent sessions has been mercifully free of any tariff-related ‘tape bombs’, allowing US stocks to stage a decent rebound from their lows.”
Meanwhile, sterling was stronger ahead of key inflation data on Wednesday, shortly before the Chancellor announces her spring statement.
The pound was up 0.3% at 1.295 US dollars and was up 0.24% at 1.198 euros when London’s markets closed.
In company news, Kingfisher (KGF.L) shares slid after the B&Q owner revealed its yearly profit dropped by more than a third and flagged weaker demand for big purchases.
The DIY giant, which also owns Screwfix, added that it was expecting around a £145 million hit this year from higher wages, taxes and inflation.
As a result, shares in the business slipped by 14.1% to 240.3p.
Fever-Tree (FEVR.L) shares lifted on the back of a 9% rise in US sales after American beer maker Molson Coors (TAP) bought a stake in the company, giving it exclusive rights to market its drinks in the US.
The mixer manufacturer saw shares climb by 4.4% to 778p despite weaker UK trading.
AO World (AO.L) was another firm which made gains during the session after the online retail firm said it expects annual profits to jump by nearly a third despite a shaky consumer backdrop.
The white goods and electronics specialist was up 1.9% at 97.8p after it also said it expects to post a rise of around 7% in like-for-like sales for the year to March 31.