UK’s FTSE 100 ends higher supported by commodity-linked stocks
By Purvi Agarwal and Roshan Abraham
(Reuters) -London stocks kicked off the week on a positive note on Monday, supported by resources-linked shares amid rising oil and metal prices, while BT Group shares surged after India’s Bharti took a stake in the telecoms firm.
The blue-chip FTSE 100 index was up 0.5% at close, while the mid-cap FTSE 250 index gained 0.3%.
Both indexes clocked a second straight week of declines on Friday amid volatility in global equities triggered by fears of a U.S. recession following a weak U.S. labour market data.
Precious metal miners led gains amongst the major FTSE 350 sectors, climbing about 2% tracking an advance in gold prices. [GOL/]
Energy shares gained 1% as oil prices firmed for the fifth straight session on easing U.S. recession fears and growing anxiety of a broader conflict in the Middle East. [O/R]
However, the personal goods sub-sector reversed course by afternoon, losing 2.4%, dragged lower by a 3.1% fall in Watches of Switzerland.
Figures due this week are inflation, gross domestic product and wages data out of the UK, as investors anticipate the Bank of England’s next rate cut.
July’s U.S. consumer price index and retail sales data due this week will also be on the investors’ watch list, which could influence the Federal Reserve’s stance on interest rate cuts in September.
Among individual stocks, BT Group jumped 8.4% to the top of the FTSE 100 after India’s Bharti Enterprises said it would acquire a 24.5% stake in the telecom giant for about 3.2 billion pounds ($4.09 billion), buying out its top shareholder.
British insurer Lancashire Holdings rose 4.5% to the top of the mid-cap index, extending gains after rising about 6% in previous session.
($1 = 0.7817 pound)
(Reporting by Purvi Agarwal and Roshan Abraham in Bengaluru; Editing by Varun H K and Jonathan Oatis)
