FTSE 100 rebounds on back of commodities after seven-day losing streak
London’s top index moved 0.18%, or 12.94 points, higher to finish at 7,270.76.
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The FTSE 100 made gains on Tuesday to break its worst losing streak since 2019.
London’s top index moved 0.18%, or 12.94 points, higher to finish at 7,270.76.
The rise came on the back of a strong session from commodities firms amid hopes that the tide could be turning in key Asian markets.
It was the first daily increase since August 10.
Michael Hewson, chief market analyst at CMC Markets UK, said: “Mining stocks are gaining despite a disappointing update from Australian miner BHP, which saw its profits fall by 37%, on the back of weakness in the Chinese economy.
“The gains in the mining sector appeared to be helped by a sudden late rebound in Chinese markets which closed higher for the first time in eight days.
“In any case the firmer tone looks to have helped the FTSE 100 break a sequence of seven successive daily closes, with Glencore, Rio Tinto and Anglo American leading the gains.”
Across the Channel, it was a mixed session as the key indexes made cautious progress before coming under pressure from continued worries about high bond yields.
Germany’s Dax index was 0.66% higher for the day and the Cac 40 closed down 0.23%.
In the US, the main markets took their cues from early positivity in other markets to edge marginally higher on the opening bell.
Meanwhile, sterling was weaker against the dollar despite better-than-expected state borrowing figures, amid a boost from tax receipts.
The pound was down 0.1% to 1.274 US dollars and 0.29% higher at 1.173 euros at market close in London.
In company news, Wood Group finished higher after the oil and gas engineering firm upgraded its revenue and profit guidance for the year due to a boost from new contracts.
Wood provided a positive trading update for investors, reporting that its adjusted core earnings for the year are forecast to be “ahead of our previous expectations”.
Shares in the business were 6.1p higher at 154.2p at the close.
Building materials firm CRH was up for the session after UBS upgraded the stock following updates from US-based peers.
Analysts at the Swiss bank lifted their earnings expectations for CRH in a positive note ahead of the firm’s latest trading update later this week.
Shares in CRH finished up 70p at 4,486p.
British American Tobacco was in the green after experts at Jefferies said the stock was too cheap and highlighted it as a significant discount against key rivals Philip Morris International and Imperial Brands.
The tobacco giant saw shares improve by 15p to 2,534p.
The price of oil had a weaker session as it continued to cool down from recent highs amid concerns over demand.
A barrel of Brent crude fell by 0.4% to 84.12 US dollars as markets were closing in London.
The biggest risers in the FTSE 100 were Fresnillo, up 27.6p at 537.6p, RS group, up 26.6p at 727p, Unite group, up 22.5p at 909.5p, Glencore, up 10.25p at 430.25p, and Flutter Entertainment, up 320p at 13,685p.
The biggest fallers were JD Sports, down 10.35p at 140.75p, Ocado, down 14.2p at 720.2p, Beazley, down 8.5p at 529p, Melrose Industries, down 7.1p at 489.7p, and Sainsbury’s, down 2.8p at 257.7p.
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