Weaker pound lifts FTSE 100, midcap index hits record high on recovery optimism

"The UK stock market has a lot of mining, energy and financials stocks and all of those should benefit from the economy reopening and more generally from a pick-up in the global economy." Britain began rolling out Moderna Inc's COVID-19 vaccine on Wednesday in Wales in a boost to the country's health system after supplies of other shots started to slow.

Reuters | Updated: 07-04-2021 15:28 IST | Created: 07-04-2021 14:00 IST
Weaker pound lifts FTSE 100, midcap index hits record high on recovery optimism

London's FTSE 100 climbed on Wednesday as heavyweight commodity stocks gained and a weaker pound lifted exporters, while a surge in shares that stand to benefit from an economic re-opening pushed the domestically focused FTSE 250 index to a record high.

The blue-chip index rose 0.9%, with large dollar-earning consumer staples companies, including Unilever, Diageo Plc, and British American Tobacco, gaining between 0.6% and 1.6% on a softer pound. Financial stocks Barclays Plc, Lloyds Banking Group, and Prudential Plc were among the biggest boost to the index.

Energy Group BP Plc and Royal Dutch Shell Plc rose 2.8% and 1.2%, respectively, while miners Rio Tinto, BHP, and Glencore Plc added over 1% each on higher crude and metal prices. The mid-cap FTSE 250 index advanced 0.8% to touch 22,170.13 points. Industrials, consumer discretionary and real-estate stocks provided the biggest boost to the index.

"As Brexit is well behind us and with the vaccine rollout happening much quicker and more successful than elsewhere, we think that the UK stock market should do particularly well," said Simona Gambarini, markets economist at Capital Economics. "The UK stock market has a lot of mining, energy and financials stocks and all of those should benefit from the economy reopening and more generally from a pick-up in the global economy."

Britain began rolling out Moderna Inc's COVID-19 vaccine on Wednesday in Wales in a boost to the country's health system after supplies of other shots started to slow. The FTSE 100 has risen 6.6% so far this year, supported by speedy vaccine rollouts and a raft of economic stimulus, but has traded in a tight range since early-January as a resurgence in virus cases across Europe and a jump in treasury bond yields has made investors cautious.

Among other stocks, Hilton Food Group rose 3.8% on higher annual pre-tax profit, while over-50s holidays group Saga jumped 10.8% after it posted profit on an underlying basis.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Blockchain in Healthcare: Opportunities and challenges

The use of blockchain in healthcare is a relatively new innovation with many of its uses still being explored and related technologies being developed, improved, and scaled. ...

Debate surrounding vaccine passports and development misses bigger picture

... ...

Blockchain vs IOTA: Looking for a better alternative

... ...

For stability, Iraq needs to crack down on corruption

... ...

Videos

Latest News

1.84 lakh people in 18-44 age group vaccinated in 4 days: Sisodia

As many as 1.84 lakh people in the 18-44 age group have received the first dose of COVID-19 vaccine since the inoculation of this category started on May 3, Deputy Chief Minister Manish Sisodia said on Friday.According to Delhi governments ...

Bajaj Finserv Launches 'Savdhan Rahein, Safe Rahein', a Public Awareness Campaign on Financial Fraud Risks

Bajaj Finserv, one of the largest financial conglomerates in India, has launched its public awareness campaign, Savdhan Rahein. Safe Rahein, across digital and social media platforms, to educate customers and public at large on financial fr...

Curfew in Goa for 15 days from Sunday

The Goa government on Friday announced a 15-day curfew in the state from May 9 to contain the spread of coronavirus infection.In another decision, carrying negative COVID-19 test report or a vaccination certificate has been made mandatory f...

AP CM slams Jharkhand CM Hemant Soren for his dig at PM

Amaravati, May 7 PTI Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy on Friday lashed out at his Jharkhand counterpart Hemant Soren for his jibe at Prime Minister Narendra Modi.Jagan took exception to a tweet by Soren in which the latte...

Give Feedback