Healthcare, defensive stocks drive UK's FTSE 100 higher

The blue-chip FTSE 100 added 0.3% in morning trade, boosted by defensive stocks British American Tobacco, Diageo, and Unilever, while drugmaker AstraZeneca and GlaxoSmithKline gained 0.8% each. "You've got Diageo and Unilever that have really strong brands and unless there is a real economic downturn where people downscale to cheaper alternatives their brand name certainly helps them weather the storm," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

UK's FTSE 100 rose on Wednesday as gains in AstraZeneca and defensive stocks outweighed losses in oil majors, while investors awaited an assessment of the full impact of the Omicron coronavirus variant. The blue-chip FTSE 100 added 0.3% in morning trade, boosted by defensive stocks British American Tobacco, Diageo, and Unilever, while drugmaker AstraZeneca and GlaxoSmithKline gained 0.8% each.

"You've got Diageo and Unilever that have really strong brands and unless there is a real economic downturn where people downscale to cheaper alternatives their brand name certainly helps them weather the storm," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. Unilever also has different brands across consumer goods segment that are adding to the company's strength, Streeter said.

Investors are awaiting the Bank of England's rate decision due on Dec. 16 after expectations of a rate hike were hit by uncertainty around the Omicron coronavirus variant. UK's benchmark FTSE 100 has rebounded to levels before the detection of the Omicron variant in late-November, as experts say the new strain might not be as severe as feared. It has also caught up with its domestically focussed mid-cap counterpart, both gaining nearly 14% so far this year, as domestic stocks underperformed the export-oriented blue-chips this quarter.

The mid-cap FTSE 250 index advanced 0.5%. UK's airline stocks Wizz Air, Easyjet and British Airways-owner IAG fell between 2% and 3% on fears of increased restrictions after media report that the Cabinet is considering tougher rules to stop the spread of Omicron for Christmas.

Tour operator TUI declined 2.9% after it posted an annual loss of over 2 billion euros ($2.26 billion). Homebuilder Berkeley Group Holdings added 4.7% as it raised annual profit outlook after sales recovered to pre-pandemic levels.

Clinigen Group jumped 10.2% after agreeing to be bought by UK-based private equity firm Triton Investment Management in a deal that values the pharmaceutical services firm at about 1.2 billion pounds ($1.6 billion).

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