FTSE 100 close: London index claws back losses as pound and oil prices soar
London’s FTSE 100 clawed back losses today after posting its worst month since last summer in May, led higher by mining giants regaining ground following yesterday’s sharp losses.
The capital’s premier index climbed 0.59 per cent to 7,490.28 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, jumped 0.56 per cent to 18,827.76 points.
Commodities producers fuelled gains on London’s top stock index, with miners Antofagasta, Anglo American and Rio Tinto all closing up more than two per cent and trading near the top of the FTSE 100 during opening exchanges. Fresnillo top the index, adding 4.51 per cent.
The commodities sector came under intense selling pressure yesterday after new numbers showed China’s economic recovery is stuttering.
Analysts had prayed for a sustained rebound in the world’s second largest economy, though those hopes appear to be fading.
“A slide in commodity prices, most notably copper, iron ore and crude oil was driven by a weaker than expected manufacturing [purchasing managers’ index] number, as the optimism that characterised the rebound in economic activity in the early part of this year has given way to a realisation that Chinese demand may well remain lacklustre for a while to come,” Michael Hewson, chief market analyst at CMC Markets UK, said.
Cult-bootmaker and FTSE 250 listed Dr Martens came under heavy selling pressure in the City today after it said profits slimmed 26 per cent to just under £160m despite clocking £1bn in revenue for the first time ever.
That earnings drop pushed its shares down nearly 12 per cent and to the bottom of the mid-cap index.
Energy network operator National Grid was the biggest faller on the FTSE 100, down more than four per cent. Auto Trader also tumbled after it said operating profits dropped nine per cent.
The pound surged nearly one per cent against the US dollar.
Oil prices soared more than three per cent.