FTSE 100 Edges Higher; Shell Denies BP Takeover, ABF Flags Bioethanol Concerns

Highlights

• FTSE 100 advanced amid geopolitical developments and currency gains

• Shell (LON:SHEL) dismisses speculation over possible acquisition of BP (LON:BP)

• Associated British Foods (LON:ABF) raises concerns over future of Vivergo bioethanol unit

The FTSE 100 index moved higher in early trading, supported by easing geopolitical tensions in the Middle East and a strengthening British pound. Gains across major sectors added to positive sentiment, while the FTSE 350 and FTSE broader benchmarks showed modest advances.

Pound Strength Supports Broader Market

Sterling appreciated against the US dollar, driven in part by easing concerns over regional instability. The currency movement provided support to sectors with significant import exposure and highlighted optimism over macroeconomic resilience. This came as European markets also advanced, with key indices in Germany and France reflecting similar gains.

Shell (LON:SHEL) Refutes BP Acquisition Reports

Shell (LON:SHEL) firmly denied media speculation linking the company with a possible acquisition of BP (LON:BP). In a statement issued Thursday, Shell clarified that it is not in discussions regarding any such transaction and is not actively exploring this direction. The response followed widespread speculation that drove movements in both tickers early in the session.

Shares of both Shell and BP saw brief reactions to the news, though gains later moderated. The energy sector remained in focus given broader developments in crude oil dynamics and supply stability. Shell, listed on the FTSE 100, continues to attract attention for its strategic direction, especially following recent portfolio streamlining.

BoE Comments Highlight Inflationary Uncertainty

Bank of England Governor Andrew Bailey commented on the outlook for inflation, noting that recent price increases have introduced more complexity to the economic landscape. He pointed to signs of slack in the UK labor market, a factor that could influence the central bank’s forthcoming decisions on monetary policy. The remarks were closely watched by financial participants across the FTSE 100 and FTSE 350 indices.

Associated British Foods (LON:ABF) Flags Risk to Vivergo Plant

Associated British Foods (LON:ABF), listed on the FTSE 100, issued a statement regarding challenges faced by its Vivergo bioethanol operation. The company cited regulatory shifts and recent trade agreements allowing duty-free American ethanol imports as major hurdles to the viability of the business unit. Formal discussions with government bodies are underway, though wheat procurement was halted earlier in June and employee consultations have already commenced.

The update underscores broader challenges within the renewable energy and agricultural processing sectors. ABF is also tracked on various FTSE Dividend Stocks listings given its income distribution record, making developments at Vivergo especially notable for shareholders seeking yield stability.

Other Movers Across the FTSE Landscape

Among other notable movers, Serco Group (LON:SRP) showed upward movement, aligning with a broader rally in service-oriented firms. Inchcape (LON:INCH) also edged higher, benefitting from recent updates in the automotive distribution segment. Moonpig Group, listed on the FTSE AIM 100 Index, posted notable strength during the session.

Markets continued to respond to geopolitical developments, including a reported ceasefire agreement in the Middle East, which contributed to a risk-on tone across European equities.

As trading progressed, attention remained on macroeconomic data and corporate updates expected later in the week.