UPDATE 2-FTSE rebounds as oil and mining stocks are lifted by U.S. and Chinese data


Reuters | Washington DC | Updated: 01-11-2019 22:51 IST | Created: 01-11-2019 22:48 IST
UPDATE 2-FTSE rebounds as oil and mining stocks are lifted by U.S. and Chinese data
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Oil heavyweights and miners led the charge on London's FTSE 100 on Friday as Chinese factory data and a stronger than expected U.S. employment report helped the index to bounce back from its worst session in a month. The FTSE 100 advanced 0.8%, recouping almost all of its more than 1% drop in the previous session, while the FTSE 250's 0.7% advance was its best day in more than two weeks.

Renewed concern over the prospects of Washington and Beijing settling their protracted trade dispute has stoked caution in recent weeks. However, some nerves were settled by the data showing that U.S. job growth slowed less than expected in October and China's factory activity expanded at its fastest pace in more than two years. The mining sector enjoyed its best day on the market in more than nine months, with Rio Tinto, Glencore, and Anglo American rising more than 3% to top the mainboard.

Oil majors Shell and BP both gained 1.6% to boost the blue-chip index further. Sterling, meanwhile, was steady as investors brace for a British general election in December.

CMC Markets analyst David Madden suggested the pound was finding support from opinion polls that showed the Conservative party leading Labour. "The Conservatives are viewed as being pro-business, so traders are buying back into the pound," Madden said.

News-driven moves sent small-cap car dealership chain Lookers plunging as much as 30% after its second profit warning in less than four months and the departure of two top executives. The update dragged shares in rival Inchcape 2.7% lower and Madden said that car dealerships would need to "carefully manage" their inventory in the face of expected subdued demand over the medium term.

Among mid-caps, the world's largest inter-dealer broker TP ICAP jumped 6.5% after quarterly revenue benefited from a bounce in trading activity this summer on global trade frictions and Brexit uncertainties. Home repairs provider Homeserve rose 4.6% after Peel Hunt analysts raised its rating on the stock.

 

Also Read: UPDATE 1-FTSE 100 breaks off from four-day winning run

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

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