- Anglo American shines after production update
- Sterling continues to weaken after inflation data
- FTSE 100 up 0.8%, FTSE 250 slips 0.1%
July 20 (Reuters) – Britain’s blue-chip index hit a fresh one-month high on Thursday as strong production numbers from Anglo American and hopes of fresh stimulus for China’s slowing economy boosted mining stocks.
The exporter-heavy FTSE 100 (.FTSE) rose 0.8%, extending gains for a third straight session.
Anglo American (AAL.L) climbed 3.3% after the global miner said its first-half copper production surged 42%, underpinned by the ramp-up of its Quellaveco mine operations in Peru.
The FTSE 350 index of industrial metal miners (.FTNMX551020) gained 2.9% as prices of most base metals rose on growing hopes that top metals consumer China would introduce additional support for its economic growth.
“FTSE 100 is a portfolio of miners, oil companies and banks. What we’re seeing is a repricing upwards of all of those under loved assets, which have been out of favour for the last decade or two,” said James Baxter founder at Tideway Wealth.
Also supporting the internationally focused FTSE 100, the pound slid for a fifth straight session after data this week pointed to easing price pressures in Britain.
Traders pared bets of aggressive rate hikes from the Bank of England, with the prospect of rates rising above 6% now likely off the table. Money market futures were pricing in nearly 70% chance of a 25 basis point rate hike in August.
Homebuilders (.FTNMX402020) climbed 0.2%, adding to a 7% jump in the previous session.
he more domestically focused FTSE 250 midcap index (.FTMC) slipped 0.1% from near two-month highs hit on Wednesday.
Pharmaceutical company Hikma (HIK.L) jumped 5.7% after tornado damage to a U.S. facility owned by competitor Pfizer boosted other drugmakers’ stock.
Babcock International Group (BAB.L) rallied 14.6% after the engineering company reinstated dividend for 2024.
IG Group (IGG.L) rose 3.6% after the online trading platform raised its dividend and said it would buy back shares after it recorded total revenue of one billion pounds ($1.29 billion) for the first time in its history.
Reporting by Shashwat Chauhan, Khushi Singh and Rupali Chaudhary in Bengaluru; Editing by Nivedita Bhattacharjee, Eileen Soreng and Alison Williams
Our Standards: The Thomson Reuters Trust Principles.
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