Rio Tinto, BHP lift FTSE 100 on China stimulus

Rio Tinto, BHP lift FTSE 100 on China stimulus

Reuters  | Aug 17, 2020 09:25

Rio Tinto, BHP lift FTSE 100 on China stimulus

By Sagarika Jaisinghani

(Reuters) - London's FTSE 100 rose for the first time in three sessions on Monday as more stimulus in China powered mining stocks, while investors looked to a slate of macroeconomic data due later in the week to gauge the pace of a post-pandemic rebound.

The commodity-heavy FTSE 100 (FTSE) was up 0.3%, with miners Rio Tinto Plc (L:RIO), BHP Group Plc (L:BHPB) and Anglo American Plc (L:AAL) adding between 1.6% and 2.4%.

Asian shares crept closer to their pre-pandemic highs as fresh liquidity from China's central bank helped investors brush past a delay in a weekend meeting of U.S. and Chinese officials to review their Phase-1 trade pact.

The mid-cap FTSE 250 (FTMC), however, was down 0.1%, pressured by another drop for travel and leisure stocks (FTNMX5750), days after Britain expanded its quarantine list to include France and other countries.

"There appears to be increasing nervousness that economies are reaching the limits of what they can do without increasing the risk of a surging second wave of cases as we head toward the autumn months," said Michael Hewson, market analyst at CMC Markets UK.

The FTSE 100 has bounced 24% from a coronavirus-driven crash in March as data signalled a nascent rebound in key sectors such as housing, but a recent surge in COVID-19 infections has made investors cautious about betting on risky assets in the absence of a vaccine.

After retail sales for July disappointed in both China and the United States last week, UK data on Friday is likely to show a sharp slowdown following a jump in June. Inflation, consumer confidence and flash readings of business activity surveys are also due this week.

© Reuters. The London Stock Exchange Group offices are seen in the City of London, Britain

In earnings-driven news, meat processor Cranswick Plc (L:CWK) jumped 6.4% after a 25% surge in first-quarter revenue, while life-science firm Horizon Discovery Group Plc (L:HZDH) tumbled 4% on posting a first-half loss.

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

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.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';