FTSE 100 rises as Prudential leads financials higher

London's FTSE 100 rose on Wednesday, aided by gains in financial stocks after insurer Prudential reported upbeat earnings, while Unilever climbed after the food company suspended imports and exports out of Russia. The blue-chip index FTSE 100 rose 1.7% in early trading, with banks and insurers leading gains.

London's FTSE 100 rose on Wednesday, aided by gains in financial stocks after insurer Prudential reported upbeat earnings, while Unilever climbed after the food company suspended imports and exports out of Russia.

The blue-chip index FTSE 100 rose 1.7% in early trading, with banks and insurers leading gains. Prudential jumped 5.6% and was among the top gainers after the Asia-focussed insurer posted a 16% rise in its 2021 operating profit, boosted by strong new insurance sales as the region battles the pandemic.

"Results this morning are certainly helping to an extent. I think market appears to be not necessarily in a 'buy the dip' mode but certainly squaring off some short positions. It's bit of a tentative buying but nothing too excessive," said Chris Beauchamp, chief market analyst at online trading platform IG. Unilever rose 1.3% after it became the first major European food company to stop imports and exports out of Russia on Tuesday following the country's invasion of Ukraine.

The benchmark index has dropped nearly 4% so far this year, the least among its pan-European peers, supported by stronger commodity prices. However, the rising energy costs has raised inflationary concerns. Meanwhile, Britain transport minister Grant Shapps said the country will step up its production of oil and gas, a day after saying it will ban Russian oil imports at the end of the year.

The domestically focused mid-cap index advanced 2.6%, with travel and leisure among the top gainers. Legal & General Group Plc jumped 4.0% after the life insurer and asset manager reported an 11% jump in annual operating profit to 2.26 billion pounds ($2.96 billion), as economies recover from the COVID-19 pandemic.

Polymetal International jumped 20.4%, rebounding from a record low in the prior session, after the Russia-exposed miner said its Russian operations continued undisrupted.