FTSE losing streak ends after mining gains and improved economic outlook
Britain’s leading shares rose yesterday as gains for miners and improved sentiment over global economic recovery more than offset weakness in bank stocks, after Standard Chartered results lagged expectations.
The FTSE 100 closed up 25.21 points, or 0.5 per cent, at 5,071.68, snapping a four-session losing streak.
Index moves were accentuated as volumes remained light, with the index trading just 69 per cent of its average 90 day volume.
“Trading has been lacklustre to say the least,” said Jimmy Yates, head of equities at CMC Markets.
“Investors have looked for value in mining stocks after their recent weakness, and while there were no real shocks at the G20 meeting, the countries appeared to put on a united front on combating deficit problems, providing a glint of optimism that the global recovery won’t be stifled.”
“Mining stocks gained having fallen as much as 9 per cent over the last four days, and along with base metal prices firming as copper climbed towards its highest level in almost a month yesterday.
Fresnillo rose 4.9 per cent, topping the risers chart, while Antofagasta and Anglo American rose 2.5 and 2.2 percent, respectively.
Leaders of the Group of 20 leading countries papered over differences on the balance between reviving economic growth and cutting budget deficits at weekend talks in Toronto, leaving room for each country to move at its own pace and adopt “differentiated and tailored” policies.
Integrated oils were higher as a sector, boosted by a 1.2 per cent gain from BP, rebounding slightly from the 14-year low hit on Friday.