UK's FTSE 100 pressured by stronger pound; miners climb
Reuters
Published Apr 03, 2024 08:32
Updated Apr 03, 2024 17:27
By Medha Singh, Pranav Kashyap and Khushi Singh
(Reuters) -The UK's blue-chip FTSE 100 index closed little changed on Wednesday, as a stronger pound overshadowed a boost from heavyweight mining, energy and bank stocks.
Precious metal miners firmed 2.1% as gold extended its recent record run, while energy stocks added 1% as oil prices continued to rise on supply risks. [GOL/] [O/R]
The exporter-heavy FTSE 100 was flat on the day as the pound firmed 0.5% to $1.26, with losses in shares of big dollar earners Unilever (LON:ULVR), Diageo (LON:DGE) and AstraZeneca (NASDAQ:AZN) weighing the most.
The index had fallen by as much as 0.7% earlier in the session as the recent pull back in U.S. rate cut bets weighed on global investor sentiment. [MKTS/GLOB]
"Fed Chair Jerome Powell's speech later in the day might add some volatility to the mix," said Axel Rudolph, senior market analyst at online trading platform IG.
Powell's speech, which began around 1610 GMT, will be scrutinised for clues on his stance on interest rates. Jobs data from the world's largest economy will also be on investor's radar this week.
Data on Wednesday showed a surprise fall in euro zone inflation last month, solidifying the case for the European Central Bank to start lowering borrowing costs.
"UK investors are looking at European data as a prelude for what we may see in the UK later in the year," said Ben Laidler, global markets strategist at eToro.
The more UK-centric FTSE 250 edged up 0.2% as industry data showed British supermarket total sales rose year-on-year in the four weeks to March 23 as slowing inflation encouraged shoppers to increase purchases.
Bank stocks firmed 1.6%.
Shares in Topps Tiles dropped nearly 4% after the retailer flagged subdued demand in the domestic repair and maintenance sector in 2024.
Renishaw (LON:RSW) fell 2.5% after Germany's Siemens said it does not intend to make an offer for the engineering company.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.