Miners push FTSE 100 higher; fading recession fears lift mood
Reuters
Published Jul 13, 2023 08:22
Updated Jul 13, 2023 17:31
By Shashwat Chauhan and Shristi Achar A
(Reuters) - Britain's FTSE 100 rose for the fourth straight session on Thursday buoyed by gains in base metal miners, with data showing the UK economy potentially dodging a recession further helping investor sentiment.
The blue-chip FTSE 100 rose 0.3%, boosted by a 2.0% rise in industrial miners as global metal prices appreciated on a softer dollar. [MET/L]
Meanwhile, Britain's economy shrank by less than expected in May, suggesting a widely forecast recession caused by high inflation and surging interest rates was not already under way.
"People might be saying they're worried, but they're still spending, still employed, and that creates a more positive narrative in the markets," said Shanti Kelemen, chief investment officer at M&G (LON:MNG) Wealth, and &me.
The sterling jumped to a new 15-month high after the data and the dollar dropped on the back of cooling U.S. inflation.
The FTSE 100 is down 0.1% so far this year, compared with a 8.6% rise in pan-European STOXX 600 and a 17.1% gain in U.S. S&P 500.
"A lot of it's just the absence of technology because that's what's been driving most of the U.S.," Kelemen added.
The more domestically focussed FTSE 250 midcap index advanced 0.3% as Watches of Switzerland Group surged 10.8% after the luxury watches retailer reported a 25% jump in full-year revenue.
Homebuilder Barratt Developments (LON:BDEV) slipped 1.6% to hit its lowest in nearly seven months after flagging that rising mortgage rates and stubborn inflation could hit demand this fiscal.
The broader homebuilders index fell 0.8%.
An industry survey showed signs of a slowdown in Britain's housing market in June, with expectations of activity to remain subdued as higher borrowing costs hit new buyer enquiries.
Shares of Domino's Pizza Group, the London-listed operator of U.S. chain Domino's Pizza Inc, added 4.6% on the appointment of Andrew Rennie as its new chief executive officer.
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Written By: Reuters
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