Lenders, energy stocks help London stocks extend gains

Energy stocks rose 1.6%. Ocado Group and Marks & Spencer advanced 2.4% and 2.2%, respectively, after Ocado Retail, a joint venture between the firms, retained its annual forecast and reported a rise in first-quarter sales.

UK shares extended gains on Tuesday, supported by an upbeat performance in energy heavyweight BP, while lenders gained following reassuring comments by Bank of England Governor Andrew Bailey on the stability of the banking sector.

Bailey said in a speech that UK banks were resilient in the face of strains in the global banking system, but noted that interest rate-setters would continue to focus on fighting inflation. Banks added 1.3%.

The pound strengthened 0.3% as traders weighed the prospects of higher interest rates. The blue-chip FTSE 100 rose 0.6%, while FTSE 250 climbed 0.2% by 0718 GMT.

Shares of BP added 1.9% after the British oil firm and Abu Dhabi National Oil Co (ADNOC) made an offer to jointly acquire 50% of Israeli offshore natural gas producer NewMed Energy for around $4 billion. Energy stocks rose 1.6%.

Ocado Group and Marks & Spencer advanced 2.4% and 2.2%, respectively, after Ocado Retail, a joint venture between the firms, retained its annual forecast and reported a rise in first-quarter sales.