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Friday, June 2, 2023

Britain’s FTSE heads higher as miners recover

Britain’s FTSE heads higher as miners recover

LONDON: The UK’s top share index edged higher on Thursday, led by a strong rise in beaten-down mining stocks as news of fresh U.S.-China trade talks lifted sentiment across markets and sectors.

The blue chip FTSE 100 closed up 0.8 percent at 7,556.38 points while mid caps rose 0.7 percent.

Anxiety over a currency crisis in Turkey has rattled markets over the past week, though positive developments in the U.S.-China trade dispute calmed nerves on Thursday with broader European markets also ending the day in positive territory.

China’s commerce ministry said a fresh round of trade talks will be held with the U.S. in August, boosting base metals prices and in turn lifting shares in heavyweight UK miners.

“Investors will be very relieved there isn’t a continuation of yesterday’s market slump,” Russ Mould, investment director at AJ Bell, said.

Shares in Antofagasta, Glencore, Fresnillo , Rio Tinto and BHP Billiton all rose between 0.9 and 2.5 percent.

The FTSE 350 mining index bounced back 1.3 percent, having dropped almost 5 percent in the previous session to a four-month low.

Big, dollar-earning consumer staples stocks also gave a boost to the index as sterling traded close to 2018 lows, though the currency was modestly higher on the day. Shares in British American Tobacco, Imperial Brands and Unilever  were all strongly in positive territory.

Oil majors and FTSE heavyweights BP and Royal Dutch Shell also added points to the index, rising 0.6 percent and 1 percent respectively.

Elsewhere it was a heavy day for stocks trading ex-dividend, with Evraz, Legal & General and Lloyds  among the biggest fallers.

Shares in Kingfisher were down 4.8 percent after Europe’s second-largest home improvement retailer said sales rose thanks to prolonged warm weather, but a weak performance at French business Castorama clouded its outlook.

“The longer-term picture for Kingfisher is tough, with a slowing housing market and few (home) movers affecting sales at its stores,” Ed Monk, associate director at Fidelity Personal Investing’s share dealing service, said.

Results were also in focus among mid-cap stocks. Shares in online travel agent On The Beach jumped more than 15 percent after a trading update, while a half-year earnings report helped Kaz Minerals shares gain 2.3 percent.

Copyright Reuters, 2018

Source: Brecorder

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