LONDON MARKETS: FTSE 100 Jumps To Fresh 2016 High As Commodity Stocks Climb
October 10 2016 - 12:21PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
U.K. benchmark closes at highest level since April 2015
U.K. stocks finished higher Monday, with commodity-related
stocks helping to lead the way up as prices for oil and metals
jumped.
The FTSE 100 tacked on 0.8% to end at 7,097.50, The benchmark
achieved its highest close since April 2015, according to FactSet
data.
The benchmark is approaching all-time highs after climbing 2.1%
last week, propelled by a continued decline in sterling against the
dollar . A lower pound has been aiding the FTSE 100, which is
heavily weighted by multinationals, such as miners, that have large
overseas sales.
Shares of a number of miners were higher Monday, with Fresnillo
PLC (FRES.LN) up 1.2%, Antofagasta PLC (ANTO.LN) gaining 1.6% and
Anglo American PLC (AAL.LN) up 2.1%. Closely watched gold prices
(http://www.marketwatch.com/story/gold-rallies-after-a-punishing-past-week-regains-key-chart-level-2016-10-10)
were up 0.7% on Monday.
Meanwhile, oil futures gained roughly 3% as Russian President
Vladimir Putin gave his support
(http://www.marketwatch.com/story/putin-signals-russia-might-move-to-freeze-or-cut-output-2016-10-10)
to international efforts to limit oil supply, and as Saudi Arabia's
energy minister Khalid al-Falih said that he was optimistic
(http://www.marketwatch.com/story/not-unthinkable-for-oil-to-hit-60-this-year-says-saudi-energy-minister-2016-10-10)
major oil producers could agree to cut production.
Big players in the oil industry have a habit of not respecting
agreements, "but for now, traders are loving the news," said Naeem
Aslam, chief market analyst at ThinkMarkets UK, in a note.
Oil majors Royal Dutch Shell PLC (RDSB.LN) and BP PLC (BP.LN)
finished 2.8% and 1.7% higher, respectively.
The pound moved lower again on Monday, buying $1.2390 compared
with around $1.2438 late Friday. Sterling slumped as Reuters
reported the British government said holding a second vote in
parliament on the U.K.'s exit from the European Union would not be
acceptable
(http://uk.reuters.com/article/uk-britain-eu-parliament-idUKKCN12A177?il=0).
On the downside, EasyJet PLC (EZJ.LN) was one of the FTSE 100's
big losers, falling 2.3%. The budget airline last week warned that
the pound's slide since the June Brexit vote is eating into its
earnings.
Also heading lower was Royal Bank of Scotland PLC (RBS.LN)
(RBS.LN) . Shares were down 1.8% following reports by the BBC and
Buzzfeed News (http://www.bbc.co.uk/news/uk-37591335) that the bank
tried to profit from businesses it claimed it was helping. RBS
denied it deliberately pushed businesses to fail.
Among midcaps, William Hill PLC (WMH.LN) climbed 2.8% after news
the bookmaker is in talks about an all-stock merger of equals with
Amaya Inc ().(AYA.T) , a Montreal-based gaming technology
company.
The midcap FTSE 250 shed 0.1% to end at 17,978.90.
(END) Dow Jones Newswires
October 10, 2016 12:06 ET (16:06 GMT)
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