UK FTSE 100 rises on mining momentum; Anglo American shines

The UK’s FTSE 100 extended its gains on Thursday as mining shares rose on higher metal prices, while global miner Anglo American topped the index after reporting a rise in copper output in the first half.

The blue chip FTSE 100 gained 0.7%, hovering around a one-month high on Wednesday. The more nationally focused FTSE 250 mid-cap index gained 0.1% after jumping nearly 4% in the previous session.

Industrial metal miners gained 3.2% as prices of most base metals rose on short-covering following a report that the Chinese government is considering support measures for the housing market. Anglo American added 5.1% after reporting a 42% increase in first-half copper production.

A weaker pound continued to support gains in the FTSE 100, a day with a large number of exporters, a day after data showed domestic inflation eased more than expected and traders sharply adjusted their terminal rate expectations for the Bank of England. “The potential economic benefits of interest rates peaking and hopefully not staying there for long is a huge boon for the economy,” said Craig Erlam, senior market analyst at OANDA.

Traders, however, are betting that the BoE will raise its lending rate by a quarter percent when it meets next month. Last night, BoE Deputy Governor Dave Ramsden said inflation data still showed risks of longer-term stickiness.

The construction and materials sector added 1.2% as Volution Group shares rose 5.2% after the supplier of ventilation products said it expects full-year earnings to beat current market expectations. IG Group rose 3.9% after the online trading platform raised its dividend and said it would buy back shares after posting total revenue of 1 billion pounds ($1.29 billion) for the first time in its history.

Dunelm Group advanced 2.7% after the home furnishings retailer said it expects full-year profit to be “slightly” above market expectations. Babcock International Group jumped 7.5% after the engineering firm reinstated the dividend for fiscal 2024.

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