Shares in Industrial Metals & Mining names were among the best performers on the FTSE 350 at the start of June as UK investors reacted to news that Chinese authorities were easing Covid-19 restrictions.
Also doing the rounds was speculation that Washington might ease some of the trade tariffs that had been put in place by the previous administration.
According to analysts at SP Angel, the possible lifting of tariffs was seen as “hugely significant in repairing relations between the US and China and helping to stimulate global trade.”
At one point during Monday’s session, copper futures hit their best level since April.
Precious Metals and Mining issues also fared well, benefitting from early weakness in the US dollar, although by the end of trading it had recovered its poise.
Benefitting stocks more generally, equity strategists at JP Morgan reiterated their preference for UK stocks in 2022.
Life insurance shares also moved higher, helped by a big move higher for longer-term government bond yields on both sides of the Atlantic.
Worth noting, in the background, investors were waiting on the release of consumer price data for the month of May on Friday.
Some strategists, including Mislav Matejka at JP Morgan believed that a peak in inflation was like on an annualised basis and that the associated peak hawkishness from the Federal Reserve was now potentially in the rear-view mirror.
Others however saw a risk that the upcoming CPI figures might yet put the cat among the pigeons.
Top performing sectors so far today
Industrial Transportation 3,236.29 +3.78%
Electricity 11,270.12 +3.36%
Industrial Metals & Mining 8,171.06 +3.30%
Life Insurance 6,915.53 +2.74%
Precious Metals and Mining 10,678.65 +2.46%
Bottom performing sectors so far today
Pharmaceuticals & Biotechnology 20,531.83 -2.48%
Telecommunications Service Providers 3,174.14 -0.52%
Automobiles & Parts 2,210.46 -0.39%
Travel & Leisure 6,565.91 -0.08%
Alternative Energy 0.00 0.00%
