December 3, 2022

EUNews24

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Miners, financials boost FTSE 100 ahead of key BoE meet

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 London’s FTSE 100 rose on Wednesday, led by banks and mining stocks in anticipation of a second consecutive rate hike from the Bank of England meeting on Thursday.

The blue-chip FTSE 100 index (.FTSE) was up 0.7%, extending gains for the second session, while the domestically focused mid-cap index (.FTMC) rose 0.8% with consumer discretionary stocks leading gains.

“Unless the Bank of England pulls off another shock move and doesn’t deliver the rate hike that investors are expecting, I think that we’re going to continue very much the same way that we have been,” said Danni Hewson, financial analyst at AJ Bell.

“So all of those financials, the value stocks are going to continue to become increasingly attractive to investors.”

The banking sub-index (.FTNMX301010) rose 0.5% as expectations of a 50-basis-point increase in rates from the BoE pushed yields up, with the two-year yields at a level last seen in May 2011 and the five-year yields on British bonds at their highest since Oct 2018. BOEWATCH

Copper ticked up on Wednesday as the dollar remained restrained after recently tumbling from a 19-month peak, while gold prices were hovering close to the $1,800 psychological level.

Among miners, Rio Tinto (RIO.L), CRH Plc (CRH.L), Anglo American (AAL.L) were the top gainers tracking stronger metal prices.

Among individual stocks, Ocado (OCDO.L) rose 7.5% and was the top percentage gainer on the blue chip index after Credit Suisse double upgraded the online supermarket group.

Vodafone (VOD.L) rose nearly 2.8% after the network provider said it was on track to meet its full-year guidance and posted a 2.7% rise in third-quarter group service revenue.

SOURCE: REUTERS

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