By Samuel Indyk
Investing.com – The UK’s FTSE 100 was higher heading towards midday as miners and financials once again push the index upwards. Cyclical sectors were all firmly in the green on prospects for higher growth in the coming months as the global vaccine effort continues to pick up pace. Miners lead the index higher with Anglo American PLC (LON:AAL) and EVRAZ plc (LON:EVRE) the two best performing stocks in the UK blue-chip index.
Financials were also strong in a continuation of the move seen at the end of last week. Lloyds Banking Group PLC (LON:LLOY) has benefitted from an upgrade at Goldman Sachs who took their rating to neutral from sell. NatWest Group PLC (LON:NWG) were also higher but HSBC Holdings PLC (LON:HSBA) underperformed their banking counterparts. Shares were flat after the company came under scrutiny after they froze the accounts of Hong Kong activist Ted Hui and his family.
Rolls-Royce
Jet engine manufacturer Rolls-Royce Holdings PLC (LON:RR) props up the index after reports that the company is considering plans to temporarily close its jet engine plants during the summer amid heavy losses. A decline in air travel has impacted sales for Rolls-Royce as engines have travelled fewer miles since the pandemic began.
AIM-listed Omega Diagnostics Group Plc (LON:ODX) has been one of the best performers in the UK after reports that the company has been selected to provide additional lateral flow tests to the UK.
AstraZeneca PLC (LON:AZN) shares have been relatively unreactive to reports that their vaccine is less effective against the new South African variant of the coronavirus. South Africa stopped administering the vaccine after initial data but the government has tried to calm the situation in the UK, emphasising that the most dominant strains in the UK are not the South African strains.
Oil prices remain elevated with Brent crude futures trading above $60/bbl for the first time in a year. Precious metals remain in focus, particularly Silver Futures after the recent Reddit squeeze. A note from Bank of America) said they see silver averaging $28.74/oz this year and $31/oz next year.