BP and Shell push higher as oil prices rise

Amid hopes that this year's contraction in the UK economy won't be as bad as feared, the FTSE 100 index rallied 0.6% to 6,262.7, while the domestic-focused FTSE 250 index was higher at 17,576.

A rise in oil prices after a pledge by OPEC countries to meet their supply pledges also benefited top flight heavyweights BP and Royal Dutch Shell.

Meanwhuile further down the market a deal involving two of the UK's biggest school suppliers has become a target for the competition watchdog.

Studio Retail Group's plan to sell Findel Education to the Yorkshire Purchasing Organisation was today referred for a fuller investigation after the Competition and Markets Authority (CMA) said the companies were close rivals.

As the second and third largest educational distributors, the pair supply stationery, furniture and art and science materials to various schools and college sites.

Studio said it continued to believe the combination will “greatly benefit” the customers of both parties.

Despite the CMA referral, Studio's shares jumped 16% to their highest level since late February after a trading statement highlighted strong trading for its Accrington-based retail division, which trades from the Studio and Ace websites.

Studio said it had attracted new customers during the Covid lockdown, with product sales over the first 11 weeks of its new financial year up 55%. This has been driven by strong demand for toys, games, electricals, fitness and garden ranges.

Its strong performance was mirrored by today's ONS retail sales figures, with volumes up by a record 12% in May as Britons shopped online and returned to DIY outlets.

There was also a more encouraging tone from events operator Hyve, whose shares rallied 4% today after it said the easing of lockdown restrictions meant its schedule of events for Shanghai from the end of July were currently set to run as planned.