LONDON: Britain’s blue-chip index hit a fresh one-month high on Thursday as strong production numbers from Anglo American and hopes of fresh stimulus for China’s slowing economy boosted mining stocks.
The exporter-heavy FTSE 100 rose 0.8%, extending gains for a third straight session. Anglo American climbed 3.3% after the global miner said its first-half copper production surged 42%, underpinned by the ramp-up of its Quellaveco mine operations in Peru.
The FTSE 350 index of industrial metal miners gained 2.9% as prices of most base metals rose on growing hopes that top metals consumer China would introduce additional support for its economic growth. “FTSE 100 is a portfolio of miners, oil companies and banks. What we’re seeing is a repricing upwards of all of those under loved assets, which have been out of favour for the last decade or two,” said James Baxter founder at Tideway Wealth.
Also supporting the internationally focused FTSE 100, the pound slid for a fifth straight session after data this week pointed to easing price pressures in Britain.
Traders pared bets of aggressive rate hikes from the Bank of England, with the prospect of rates rising above 6% now likely off the table. Money market futures were pricing in nearly 70% chance of a 25 basis point rate hike in August.
Homebuilders climbed 0.2%, adding to a 7% jump in the previous session.
The more domestically focused FTSE 250 midcap index slipped 0.1% from near two-month highs hit on Wednesday.
Pharmaceutical company Hikma jumped 5.7% after tornado damage to a US facility owned by competitor Pfizer boosted other drugmakers’ stock.
Babcock International Group rallied 14.6% after the engineering company reinstated dividend for 2024.
IG Group rose 3.6% after the online trading platform raised its dividend and said it would buy back shares after it recorded total revenue of one billion pounds ($1.29 billion) for the first time in its history.
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