The FTSE 100 made ground during the morning session today, up by 0.43%, or 30.77 points, to 7,131.65.
“Resources stocks helped lift the FTSE 100 on Wednesday morning despite a mixed showing from Asia and last night in the US,” says AJ Bell investment director Russ Mould.
“A positive update from Royal Dutch Shell and oil prices touching six-year highs contributed to gains for these index heavyweights and helped outweigh any fears over the inflationary pressures the recent spike in commodity prices may create.”
“This might change if meeting minutes from the US Federal Reserve, published this evening, sound the alarm on inflation,” Mould added.
FTSE 100 Top Movers
Shell (2.5%), along with miners BHP (2.47%) and Antofagasta (2.39%), are heading up the FTSE 100 on Wednesday.
Trailing the pack at the other end is Entain (-2.3%), Flutter Entertainment (-1.91%) and Rolls-Royce (-1.65%).
Shell today announced its intention to increase shareholder payouts as the world economy continues on its path to recovery. The FTSE 100 company confirmed that, as of its Q2 announcement at the end of July, its will raise its dividend to within the range of 20% to 30% of cash flow from its operations.
Shell put its decision down to a “strong operational and financial delivery” on the back of what it considers to be an improving outlook of the global economy. The oil giant said that “in the second quarter, Shell expects to have further reduced its net debt, although the extent of the reduction will be moderated by working capital movements”.