LONDON, July 26 — UK’s top share index hit four-week highs today, bucking the trend in European markets, as an upbeat sales forecast from Unilever and gains in commodity-linked stocks overshadowed worries about an energy crisis in the continent.
Unilever Plc shares climbed 2.9 per cent to their highest in more than 7 months after the consumer giant raised its full-year sales guidance as it hiked prices to counter soaring costs. Overnight, top US retailer Walmart Inc slashed its profit forecast as surging prices for food and fuel prompted customers to cut back on discretionary purchases.
“We’re favouring long defensives versus cyclicals within Europe with the idea being that if we have a moderate decline in economic indicators, our base case is that defensives will do better,” added Morgan-Brownsell.