UK’s benchmark FTSE 100 index advanced on Tuesday, lifted by commodity and banking stocks, while global markets remained cagey in a busy week for global central bank meetings. The FTSE 100 gained 0.9% at 0707 GMT, after a day off to mark Queen Elizabeth’s funeral.
Miners added 1.4%, tracking firm metal prices on hopes that top consumer China would ease COVID-19 curbs further.
Oil majors BP and Shell rose more than 1% each in early trading.
Market sentiment, however, remained cautious ahead of the US Federal Reserve’s Sept. 20-21 policy meeting, as traders positioned themselves for a rising interest rate environment in the world’s largest economy.
The Bank of England’s policy decision that got pushed back to Sept. 22 from Sept. 15, because of the national mourning after the death of Queen Elizabeth, is also due this week, with traders seeing a 75% likelihood of a 75 basis point hike. Rate-sensitive banks climbed 1.4%.
The domestically focussed mid-cap index edged 0.2% higher, with holiday group TUI AG among its best performers as it gained 3.4% after reiterating it expects to return to profitability this year.
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