Mining surge helps Footsie regain ground
Market report Emma Newlands
The London market’s relief rally continued as concerns over North Korea eased and blue-chip mining stocks surged on robust economic data from China.
The FTSE 100 Index closed up 65.36 points to 7,430.62, with European stocks regaining lost ground as the sell-off sparked by the US’S standoff with Pyongyang appeared to have run its course. David Madden, market analyst at CMC Markets UK, said: “Traders are using the halt in hostilities as an opportunity to pick up stocks, but how long will the buying momentum last?”
The top-flight was also bolstered by Londonlisted mining companies, thanks to betterthan-expected Chinese manufacturing figures. Anglo American was among the biggest risers, up 38.5p to 1,402.5p.
On the currency markets, the pound was down 0.3 per cent against the US dollar at $1.288 after Bank of England official Michael Saunders said a “modest” interest rate hike was needed to curb surging inflation. Sterling was also 0.2 per cent off versus the euro at €1.08.
In UK stocks, Ladbrokes Coral pushed ahead after the blockbuster Floyd Mayweather vs Conor Mcgregor boxing match became its biggest betting event outside of the Grand National. It posted a 7 per cent rise in first-half pro forma earnings and shares rose 0.9p to 118.5p.
The biggest risers on the FTSE 100 Index included Mediclinic International, up 21.5p to 764.5p, Hargreaves Lansdown, up 37p to 1,400p ,and Whitbread, up 96p to 3,758p. The biggest fallers included St James’s Place, down 17p to 1,153p, Provident Financial ,down9pto 883p, and Tesco, down 1.5p to 180.9p. The online gambling firm rose despite being fined a record £7.8 million due to “serious failings in its handling of vulnerable customers”. The security services company closed as the worst bluechip performer, after being downgraded by UBS to “neutral” from “buy”.