The blue-chip FTSE 100 index opened higher on Friday on a boost from heavyweight oil and miner stocks, while a drop in Direct Line’s shares pressured midcaps, ahead of a highly anticipated U.S. jobs reading later in the day.
The FTSE 100 index rose 0.3%. The midcap FTSE 250 index dipped 0.2%.
Oil and gas stocks rose 1.7%, while industrial metal miners added 0.7%.
The sectors tracked optimism around China’s upbeat economic readings and efforts to shore up investor sentiment.
A private survey showed China’s factory activity surprisingly returned to expansion in August. The country’s central bank said it will cut the amount of foreign exchange that financial institutions must hold as reserves for the first time this year.
Insurer Direct Line fell 1.8% after it agreed to review overcharging of existing home and motor customers totalling about 30 million pounds ($38 million) for policy renewals, the Financial Conduct Authority said.
Global market participants are now awaiting a key jobs report from the United States, which will help gauge the Federal Reserve’s next move on interest rates.
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