FTSE 100 reverses losses, miners and financials lead turnaround
Reuters
Published Sep 04, 2020 08:26
Updated Sep 04, 2020 10:20
By Shashank Nayar
(Reuters) - The FTSE 100 reversed early losses on Friday as gains in mining and financial stocks pulled it back from a tech-fuelled plunge in the prior session, while housebuilders tumbled amid scrutiny from the UK's competition regulator.
The blue-chip FTSE 100 (FTSE) rose 0.6%, but was set for a third straight week of decline, while the mid-cap index FTSE 250 (FTMC) added 0.9%. Major miners BHP Group (L:BHPB) and Rio Tinto (L:RIO) rose on higher metal prices and improved prospects in China.
"The slip during the opening trade in the FTSE was a knee jerk reaction to the tech sell-off we saw on Wall Street yesterday. (However) we see investors turning more pragmatic and are re-entering the European markets on the back of cheap valuations as against the United States," said Andrea Cicione, strategist at T.S. Lombard.
Shares of housebuilders Barratt Developments (L:BDEV), Persimmon Plc (L:PSN), Taylor Wimpey (L:TW) and Countryside Properties (L:CSPC) fell between 1.0% and 3.5% after the Competition and Markets Authority (CMA) said it was investigating whether they might have broken a consumer protection law in relation to leasehold homes. Those losses pulled the wider housebuilding index (FTNMX3720) down 0.14% to a near one-month low.
The FTSE 100 has recovered nearly 17% from its multi-year lows in March with the support of historical stimulus measures, but has lost nearly 23% so far this year.
All eyes are on the U.S. job growth data for August due later in the day.
Elsewhere, housebuilder Berkeley Group (L:BKGH) rose 0.9% after maintaining its annual profit forecast and plans to pay shareholder returns, as it benefited from a rebound in demand for houses after coronavirus-induced restrictions eased.
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Written By: Reuters
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