Gains in the mining sector keep the FTSE 100 above the 8,000 milestone despite subdued global market activity.
London’s FTSE 100 closed modestly higher, advancing 9.95 points, or 0.12%, to settle at 8,014.31, as gains in mining stocks helped maintain the index above the 8,000 mark. Basic resources firms, including Anglo American, Rio Tinto, and Glencore, were among the top performers, benefiting from increased optimism about China’s economic reopening following its Covid restrictions.
This growth contrasts with a bleaker outlook for the UK economy. New data from the Centre for Retail Research revealed that nearly 15,000 retail jobs have been lost in Britain since the beginning of the year.
European markets experienced a quieter session, with Germany’s Dax slipping 0.03% and France’s Cac declining by 0.16%. The US markets were closed for Presidents’ Day, leaving European investors without significant direction.
Michael Hewson, chief market analyst at CMC Markets UK, commented: “European markets saw a subdued trading session with little direction in the absence of US markets. However, the basic resource sector showed resilience, supported by stronger metals prices driven by China’s economic reopening.”
Iron ore, aluminium, and copper prices have rallied, benefiting mining companies such as Anglo American and Rio Tinto, which reported notable gains.
Currency markets also saw limited activity. The pound held steady against the US dollar and rose by approximately 0.1% against the euro by the close of trading.
In corporate news, Tesco announced a 7% pay increase for its shop workers, raising the minimum hourly wage to £11.02. This is the third pay rise in 10 months, amounting to a £230 million investment. The changes take effect on April 2, but Tesco’s share price remained unchanged.
Cybersecurity firm Darktrace saw its shares rise by 3.5% after announcing an independent review of its financial practices by EY. The company is addressing allegations of accounting irregularities raised by US hedge fund Quintessential Capital Management, which had caused shares to plunge by a third earlier.
Top Risers on the FTSE 100:
Anglo American: +128p to 3,337.5p
Frasers: +24.5p to 794p
Rio Tinto: +174p to 6,277p
Persimmon: +31p to 1,467p
Melrose Industries: +3p to 146.65p
Top Fallers on the FTSE 100:
DS Smith: -17.4p to 336p
IAG: -4.2p to 163.04p
Airtel Africa: -2.8p to 125.7p
Segro: -16.6p to 849.6p
Reckitt: -78p to 5,698p
