British shares rebound on mining, travel stocks boost

Reuters | London | Updated: 07-10-2021 14:07 IST | Created: 07-10-2021 14:05 IST
British shares rebound on mining, travel stocks boost
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London's FTSE 100 jumped on Thursday, led by gains in travel and heavyweight mining stocks, while Workspace Group surged as demand for its office spaces recovered. The blue-chip FTSE 100 gained 0.8%, with miners Glencore, Anglo-American and Rio Tinto among the top boosts. Industrial and precious metal miners added 2% each on higher metal prices. The FTSE 100 has gained about 9.5% so far this year and the mid-cap index is up nearly 10% amid re-opening optimism and accommodative central bank policies.

However, a recent rise in inflation on the back of surging oil and gas prices has weighed on UK's benchmark indices as investors now bet on a sooner-than-expected pullback of easy monetary policies. "Investors are now very much aware we are entering a period where we are going to have continued inflation and it is not going to be ridiculously transitory either," said Danni Hewson, an analyst at AJ Bell.

"But there is a lot of hope still that it will not last beyond a few months." Royal Dutch Shell slipped 1.2% after it warned of a $400 million hit to third-quarter earnings from the damage caused by August's Hurricane Ida, but also flagged a boost to cash flows on higher energy prices.

Homebuilder stocks climbed 0.5% after mortgage lender Halifax said British house prices rose by the most in almost 15 years in September. The domestically-focused mid-cap index advanced 0.6%, with travel stocks among the top performers.

Shares of online auto retailer Pendragon PLC climbed 4.6% after reporting a strong third-quarter performance. Workspace climbed 3.8% after the office space provider said the number of people using its centers in London peaked at over half of pre-pandemic levels by the end of September.

British recruitment firm Robert Walters rose 2.6% after it said its annual profit would be ahead of expectations as it benefits from a hot jobs market.

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

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