LONDON: British stocks closed higher on Monday, recovering from the prior week's losses as the focus turned to the upcoming second-quarter earnings season, although a continued rise in coronavirus cases kept sentiment subdued.
The blue-chip FTSE 100 closed 1.3% higher, pushed up by heavyweight mining stocks Rio Tinto and BHP Group. The two will be the first among their peers to release quarterly production data later in the month.
A recent rise in metal prices, particularly copper, has also improved the prospects of major miners.
The mid-cap FTSE 250 added 1.2% for the day. While second-quarter earnings are broadly expected to paint a dismal picture, markets will be looking to corporate guidance on how a post-Covid-19 recovery will pan out.
The FTSE 100 has rebounded about 26% from its March lows on a raft of monetary and fiscal stimulus, but has struggled so far in July to extend its gains, owing to pressure from rising Covid-19 cases across the globe.
Private security company G4S rose 9.3% after it said it could axe 1,150 jobs at its UK cash business as it grapples with an increased shift to digital payments triggered by Britain's coronavirus lockdown.
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