FTSE 100 flat as stronger pound weighs; miners jump
Reuters
Published Jan 20, 2021 08:21
Updated Jan 20, 2021 09:45
By Shivani Kumaresan
(Reuters) - UK's blue-chip FTSE 100 was unchanged on Wednesday as a stronger pound offset gains in miners that rose after BHP Group's upbeat output forecast and U.S. stimulus bets, with investors eyeing Joe Biden's inauguration as U.S. President later in the day.
BHP Group Ltd climbed 1.1% after it forecast record iron ore production for fiscal 2021, helped by high prices for the commodity. Other miners Rio Tinto (LON:RIO), Anglo American (LON:AAL) and Glencore (LON:GLEN) rose between 0.5% and 1%.
The FTSE 100 index slipped 0.1%. Among global markets, Asian shares hit a record high after U.S. Treasury Secretary nominee Janet Yellen's call for more fiscal support.
The domestically focussed FTSE 250 index added 0.8%.
"Everything hinges on President-elect Joe Biden's proposed fiscal stimulus, or more correctly, the Senate Republicans' attitude to it," said Jeffrey Halley, senior market analyst at OANDA.
"A bipartisan agreement will certainly continue boosting markets, including the UK."
Prime Minister Boris Johnson said he looked forward to working closely with Biden after his inauguration on Wednesday as U.S. president, highlighting the shared interests of the two close allies.
The FTSE 100 has recorded consistent monthly gains since November, supported by hopes of a vaccine-led economic recovery, but has recently lost steam as tighter business restrictions sparked fears of a slow rebound.
Burberry rose 5% as its underlying sales fell 9% in the three months ended December but the company said it remained confident in the future, buoyed by sales growth of 11% in Asia-Pacific stores.
Global education group Pearson jumped 7.2% after its global online sales grew 18% in 2020, helped by strong enrolments in virtual schools.
WH Smith (LON:SMWH) Plc rose 5.9% to the top of the FTSE 250 index as its trading during Christmas was ahead of its expectations.
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Written By: Reuters
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