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Royal Dutch Shell shares rallied on Tuesday as the oil giant, without mentioning dividends, gave the impression it would pay one.
Royal Dutch Shell RDSA, +5.13% RDS.A, +5.69%, ahead of its first-quarter results, said it signed a new $12 billion credit facility on top of its existing $10 billion facility, and it has another $20 billion in cash or cash equivalents.
“Shell’s board therefore seems to be sending a clear message that the dividend payment is not under discussion,” said Russ Mould, director of investment at AJ Bell.
Shell and rival BP BP, +3.57% also were helped by oil prices rallying off the worst levels in 18 years.
The broader FTSE 100 UKX, +0.55% edged up 0.5% to 5590.80, catching up to the gains on Wall Street on Monday. Also helping sentiment was a big rise in Chinese purchasing managers indexes.
Imperial Brands IMB, +10.40%, the cigarette maker, rose 10% as it said the virus hasn’t materially impacted performance.
Cruise operator Carnival CCL, -4.60% slumped 5% after announcing offerings of equity and convertible notes.
