Mining Stocks Provide FTSE100 Support Following China Stimulus Pledge

It was a quiet start to the day for the UK market, with no economic data for the markets to consider going into the open.

The lack of stats left the UK market to respond to news of Chinese authorities pledging to protect China’s economy from the latest COVID-19 lockdown measures.

According to the Financial Times, China’s politburo “promised to strengthen macro adjustments and achieve full-year economic and social development goals.”

Through the Asian session, the Hang Seng Index rallied by 4.01%, with the CSI300 gaining 2.43%.

Market Impact

At the time of writing, the FTSE100 was up 0.06% to 7,514.23.

Anglo American led the way, rising 1.47%, with Antofagasta up 1.00% early in the session. Glencore (+0.80%) and Rio Tinto (+0.62%) weren’t far behind.

Bank stocks weighed, however, HSBC (-0.46%), Lloyds (-1.59%), and Standard Chartered (-0.51%) in the red. Barclays bucked the trend with an early 1.16% gain.

Risk-on sentiment delivered the Pound with much-needed support this morning.

At the time of writing, the Pound was up 0.93% to $1.25693. Early in the session, the Pound fell to a morning low of $1.24445 before rising to a high of $1.25748.