The FTSE 100 continues its historic ascent, marking its longest winning streak ever. Investor optimism is fuelled by speculation of a potential merger between energy giants Shell and BP, alongside significant corporate movements and resilient economic indicators.
On Tuesday, the FTSE 100 edged higher, aiming to extend its record-breaking rally. BP shares rose over 1.5% following reports that Shell is exploring a potential takeover. Shell, working with advisers, is said to be monitoring BP’s stock and oil prices before deciding whether to proceed, though Shell shares dipped around 1.2% on the news.
In other corporate developments, AB Foods saw a rise of over 1% after confirming talks to sell its Allied Bakeries unit, which owns Kingsmill, to private equity firm Endless. Meanwhile, Deliveroo agreed to be acquired by US food delivery giant DoorDash in a deal valuing the company at £2.9 billion.
Despite global economic tensions, particularly the US-led trade war impacting business activity, the UK’s business activity contracted in April 2025 for the first time since October 2023. This slowdown is attributed to rising global trade uncertainty leading to a sharp decline in new export orders and overall demand.
Technically, the FTSE 100 is showing strong momentum. A breakout and retest above 8,400 could extend the rally toward 8,627 and 8,741, with support levels at 8,165 and 7,935. As long as the price stays above 8,165, bulls remain in control.
Shell plc is a global energy company involved in the exploration, production, refining, and marketing of oil and natural gas, as well as the manufacturing and marketing of chemicals. BP plc is a British multinational oil and gas company providing customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving, and petrochemicals used to make everyday items.
Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.
