Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

FTSE 100 rallies, crude oil falls, Bitcoin drops back below $40,000

EconomyAug 02, 2021 16:35
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters

Key Points

  • FTSE 100 closing price of 7081.4, +0.7%
  • M&A Monday lifts midcaps ( Meggitt and Sanne)
  • Union at Escondida mine rejects BHP contract offer
  • Oil lower on China growth concerns
  • UK manufacturing growth slows, GBP steady
  • Bitcoin retreats back below $40,000

By Samuel Indyk – The FTSE 100 rose on Monday amid a broad based global equity rally. The midcap FTSE 250 index outperformed, supported by M&A related gains and strong earnings.

Meggitt PLC (LON:MGGT) was the best performing stock in the FTSE 250, rising over 50% after the company agreed to be taken over by US-based Parker-Hannifin (NYSE:PH) for 800 pence per share in cash, representing a 71% premium from Friday’s closing price. This is the second bid for a UK defence group by a US firm in less than seven days, after Ultra Electronics (LON:ULE) said it would be minded to accept Cobham (LON:COB)'s offer last week.

Shares in Sanne Group (LON:SNNS) jumped after the company said it was in advanced talks with Apex over a potential takeover for 920 pence per share in cash, valuing the group at around £1.5 billion. Sanne had previously been in discussions with Cinven about a potential deal worth 875 pence per share.

BHP Group (LON:BHPB) was in focus after the union of workers at its Escondida copper mine in Chile voted to reject the company’s contract off, which could potentially lead to a strike. The government is now likely to step in to mediate talks which could last up to 10 days, but if no agreement is reached workers are expected to down tools. Escondida is the world’s largest copper mine and striking workers could impact global copper supply, however, Copper prices were relatively stable for now.

WTI and Brent crude futures both declined over fears of slowing Chinese growth. China’s Caixin manufacturing PMI fell to 50.3 - barely above the expansionary 50 threshold - to its lowest level since April 2020. Meanwhile, Covid cases in China have now spread to eight different provinces and there are fears that strict lockdowns could crimp growth at the world’s largest crude importer.

“At present, soft lockdowns have been implemented in China, but if the situation worsens, this could prompt further restrictions that could exacerbate the slowdown in economic activity, and thus reduced oil consumption,” writes StoneX energy analyst Kevin Solomon.

Manufacturing growth in the UK slowed in July, with IHS Markit’s manufacturing PMI coming in at 60.4 from 63.9 in June, unrevised from the flash reading. Growth in output and new work eased but the industry is still facing supply-chain issues.

“Although July saw UK manufacturers report a further month of solid growth, scarcities of inputs, transport and labour are stifling many businesses,” said IHS Markit Director Rob Dobson.

The update had little impact on GBP with GBP/USD trading relatively flat around 1.3900. The US Dollar Index was slightly weaker, trading near a one-month low ahead of Friday’s labour market report and as the US ISM manufacturing PMI also showed signs of slower manufacturing growth.

Bitcoin and other cryptocurrencies pulled back after weekend gains took Bitcoin to its highest level since 18th May. Saudi Aramco (SE:2222) denied reports it was planning to use flare gas to mine Bitcoin, which some had cited for the reason behind the jump in cryptocurrencies during the weekend.


Subscribe to UK here


FTSE 100 rallies, crude oil falls, Bitcoin drops back below $40,000

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email