🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

FTSE outperforms Europe, helped by commodity strength

Published 11/05/2016, 18:53
© Reuters. People walk through the lobby of the London Stock Exchange in London
UK100
-
AAL
-
BHPB
-
HG
-
CL
-
GLEN
-
FTEU3
-

By Atul Prakash and Alistair Smout

LONDON (Reuters) - Britain's leading share index edged up on Wednesday, outperforming the rest of Europe thanks to a rebound in the mining and oil sectors on the back of stronger commodity prices.

The FTSE 100 index was up 0.1 percent at 6,144.60 points by the close after rising 0.7 percent on Tuesday.

That compared to a fall of 0.4 percent for the FTSEurofirst 300 and a 0.7 percent drop for the Euro STOXX 50.

The commodities-heavy FTSE 100 benefited from demand for resource-related stocks, while the UK mining index rose 2.6 percent after prices of copper, aluminium and zinc climbed by 1-2 percent.

"After the recent sell-off, miners are once again in demand, with stronger metal prices underpinning the sector," Securequity senior trader Jawaid Afsar said.

But he warned the outlook for the sector was still grim given lingering concerns about the pace of economic growth in top metals consumer China.

Shares in Glencore (LON:GLEN), Anglo American (LON:AAL) and BHP Billiton (LON:BLT) rose between 2.3 and 5.4 percent.

Oil shares also turned higher in late trade after a spike in U.S. crude prices, following data that showed a surprise drop in crude inventories.

"The drawdown may well have been due to the wildfires in Canada as the latter’s main export market is the United States," said Fawad Razaqzada, market analyst at City Index.

"Imports are likely to fall further this week because of the significant reduction of oil output in Canada."

Experian recouped early losses to close down just 0.4 percent after the world's biggest credit data company reported unchanged full-year pretax profits against a backdrop of adverse foreign exchange movements.

Among mid-caps, William Hill slumped 6.6 percent after a lacklustre update that reaffirmed a difficult trading environment.

Shares hit a 3-1/2 year low, and are down 27 percent since late February, after a profit warning in March.

© Reuters. People walk through the lobby of the London Stock Exchange in London

"Nothing has changed since the profit warning in March," UBS analysts said in a note. Some other analysts had yet to downgrade their forecasts for the stock in light of the profit warning, they added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.