FTSE 100 close: London kicks longest losing streak since 2019 as Arm listing lifts sentiment
London’s FTSE 100 index rose for the first time in seven days as it successfully ended its longest losing streak since 2019.
Miners helped lift the FTSE 100 0.2 per cent to 7,274.71 while the midcap FTSE 250 index climbed 0.7 per cent to 18,029.00.
Fresnillo, Endeavour Mining, Anglo American and Glencore were among the largest risers on the bluechip index as markets hope for greater stimulus measures from the Chinese government to boost its flagging economy.
Fresnillo was up 5.5 per cent, Glencore 2.4 per cent while Anglo American picked up 1.6 per cent. Endeavour Mining also rose 1.7 per cent. Mining stocks are closely tied to the fate of the world’s second largest economy, which is a key source of demand for minerals.
“It may be wishful thinking, but the expectation of more significant stimulus is helping give a little more support to stocks,” Susannah Streeter, head of money and markets at Hargreaves Lansdown said.
On the FTSE 250, engineering firm Wood Group climbed 4.8 per cent, rising to the top of the index, after it upgraded its expectations for the remainder of the year.
The firm anticipates yearly revenues of $6bn, while gross earnings are set to be within its medium term target of mid to high single digit growth.
Markets were also given a boost as SoftBank-owned chip designer Arm confirmed it will float on New York’s Nasdaq next month in what will be the largest US initial public offering IPO in almost two years.
It marks a potential revival of the market for initial listings after an 18-month dry spell which has contributed to a subdued market sentiment.
European markets rose strongly this morning too while Asian markets closed higher last night, pointing to the slightly rosier picture for global markets.
In the UK there was the “glimmer of good news”, Streeter said, after public sector borrowing came in £1.7bn below the Office for Budget Responsibility’s July forecast.
The good news is unlikely to last however as slowing growth and rising gilt yields are expected to put pressure on government finances over the remainder of the year.