London stocks were still a little firmer by midday on Monday, underpinned by a strong performance in the mining sector, as investors shifted their attention to the inflation outlook.
The FTSE 100 was up 0.2% at 7,107.57.
Inflation was in focus again after Bank of England policymaker Michael Saunders said over the weekend that people should prepare for “significantly earlier” interest rate rises as inflation pressure mounts.
Miners were the standout performers as metals price rose, with Anglo American, Antofagasta, Glencore, BHP and Rio all higher.
IG market analyst Joshua Mahony said: “Lumber, iron ore, coal, and crude and all pushing into long-term highs today, highlighting how the commodities space appears to bring the greatest area of opportunity at a time when markets appear at risk thanks to surging inflation and the potential for a monetary squeeze.
“Inflation looks like it will be here for some time, and thus the ability to get long physical assets looks an attractive play at a time when traders question the stability of markets. It comes as no surprise to see commodity-focused stocks fronting up the FTSE 350 gainers, with the UK FTSE 100 outperforming many of its mainland European counterparts thanks to its strong contingency of mining stocks.”
Elsewhere, AstraZeneca nudged up after saying that its antibody cocktail to combat Covid-19 had achieved a “statistically significant reduction” in the virus or death in a phase 3 trial.
Drinks maker Britvic was knocked lower by a downgrade to ‘sector perform’ from ‘outperform’ at RBC Capital Markets.
Outside the FTSE 350, Asos shares tumbled after the online fashion retailer said in a surprise announcement that chief executive Nick Beighton was stepping down and warned over profits.
Market Movers
FTSE 100 (UKX) 7,107.57 0.17%
FTSE 250 (MCX) 22,372.78 -0.73%
techMARK (TASX) 4,507.76 -0.53%
FTSE 100 – Risers
Anglo American (AAL) 2,785.00p 3.49%
BHP Group (BHP) 1,976.20p 3.30%
Glencore (GLEN) 366.85p 3.25%
Rio Tinto (RIO) 5,089.00p 3.25%
Antofagasta (ANTO) 1,405.00p 3.04%
Standard Chartered (STAN) 494.40p 2.83%
NATWEST GROUP PLC ORD 100P (NWG) 231.20p 2.21%
HSBC Holdings (HSBA) 428.65p 2.17%
Hargreaves Lansdown (HL.) 1,428.00p 1.93%
Royal Dutch Shell ‘B’ (RDSB) 1,747.40p 1.91%
FTSE 100 – Fallers
JD Sports Fashion (JD.) 1,011.50p -2.88%
Ashtead Group (AHT) 5,468.00p -2.77%
Ocado Group (OCDO) 1,582.50p -2.59%
Flutter Entertainment (CDI) (FLTR) 14,020.00p -2.33%
Intermediate Capital Group (ICP) 2,040.00p -2.21%
CRH (CDI) (CRH) 3,388.00p -1.97%
Aveva Group (AVV) 3,410.00p -1.96%
Rightmove (RMV) 657.40p -1.94%
SEGRO (SGRO) 1,178.00p -1.92%
Experian (EXPN) 3,054.00p -1.90%
FTSE 250 – Risers
Ferrexpo (FXPO) 323.00p 4.19%
BlackRock World Mining Trust (BRWM) 550.00p 2.80%
easyJet (EZJ) 649.00p 1.95%
XP Power Ltd. (DI) (XPP) 5,090.00p 1.80%
Spire Healthcare Group (SPI) 222.50p 1.60%
Harbour Energy (HBR) 378.20p 1.50%
Law Debenture Corp. (LWDB) 763.00p 1.46%
Caledonia Investments (CLDN) 3,520.00p 1.44%
Centrica (CNA) 60.86p 1.43%
Apax Global Alpha Limited (APAX) 214.50p 1.42%
FTSE 250 – Fallers
Drax Group (DRX) 473.80p -7.10%
Britvic (BVIC) 845.50p -6.37%
TUI AG Reg Shs (DI) (TUI) 275.80p -5.97%
Darktrace (DARK) 822.00p -5.73%
Cineworld Group (CINE) 66.46p -4.84%
Trainline (TRN) 323.40p -4.43%
Pagegroup (PAGE) 649.50p -4.42%
Draper Esprit (GROW) 893.00p -4.18%
Network International Holdings (NETW) 320.30p -3.93%
Playtech (PTEC) 420.80p -3.53%
