Rise in Commodities Drives FTSE 100 Higher; Melrose jumps on single sale

0

The offices of the London Stock Exchange Group are seen in the City of London, Britain December 29, 2017. REUTERS/Toby Melville

Join now for FREE unlimited access to Reuters.com

Register

  • FTSE 100 up 1.0%, FTSE 250 up 1.2%
  • Prime Minister Johnson will face a vote of confidence

June 6 (Reuters) – London’s FTSE 100 mounted a rally in commodities shares to close higher on Monday as aircraft and car parts supplier Melrose Industries jumped on a deal to sell a unit for 650 millions of dollars.

The blue-chip index (.FTSE) gained 1.0%, while the nationally-focused FTSE 250 (.FTMC) rose 1.2% as trading resumed after a long holiday weekend to mark Queen Elizabeth’s Platinum Jubilee.

Miners Rio Tinto (RIO.L) and Glencore (GLEN.L) rose 1.6% and 4%, lifting the broader mining sector (.FTNMX551020), as copper prices hit highs of five weeks in hopes of stronger demand from China after the major consumer of the metals lifted COVID-19 restrictions.

Join now for FREE unlimited access to Reuters.com

Register

Oil majors BP (BP.L) and Shell (SHEL.L) gained 2.1% and 1.4% respectively, following a rise in Brent to above $120 a barrel after Saudi Arabia raised prices. price of its crude sales in July.

“Markets are unfazed by the political shenanigans unfolding in Westminster – there is a vast ocean of blue water between a vote of no confidence and a new Prime Minister choosing the wallpaper for Number 10,” Danni said. Hewson, financial analyst at AJ Bell.

Prime Minister Boris Johnson was facing a vote of confidence called by members of his Conservative party. Johnson was expected to survive the vote, called after a growing number of ruling Conservative Party lawmakers questioned the British leader’s waning authority over the ‘partygate’ scandal. Read more

Year-to-date, the FTSE 100 has risen 3.4% on soaring oil and metals prices, while the mid-cap FTSE 250 has fallen 13% on fears that rapid inflation does not trigger an economic downturn.

This week, investors are focused on a European Central Bank policy meeting on Thursday and U.S. consumer price data due on Friday.

Nearly every sector of the FTSE 100 traded in positive territory on Monday, with the biggest gains coming from homebuilders (.FTNMX402020) and miners (.FTNMX501010).

Melrose Industries Plc (MRON.L) rose 3.3% after agreeing to sell its Ergotron unit, which makes ergonomic desks and desk accessories, to funds managed by US group Sterling. Read more

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Anisha Sircar and Amal S in Bengaluru; Editing by Rashmi Aich, Subhranshu Sahu and Aditya Soni

Our standards: The Thomson Reuters Trust Principles.

Share.

Comments are closed.