UK Mining and Financial Stocks Deliver Early FTSE100 Support

It has been a particularly quiet morning on the economic calendar. There were major economic indicators from the Eurozone or the UK to spook the markets going into the open.

Appetite for riskier assets improved through the morning. A rebound in Chinese stocks provided much-needed support. In response to hopes of Beijing delivering stimulus, the Hang Seng Index surged by 9.08%, with the CSI300 rallying by 4.32%.

The FTSE100 Early Movers

Following a Tuesday slump that left bank and mining stocks in the deep red, it was risk-at the open.

At the time of writing, the FTSE100 was up 1.01% to 7,260.45.

Standard Chartered led the banking sector, rallying by 3.27%. Barclays (+1.85%), HSBC Holdings (+0.97%), and Lloyds (+1.76%) saw more modest gains.

The upside across the miners was more impressive. Rio Tinto (+2.28%), Glencore (+2.12%), and Antofagasta (+2.55%) led the way, while Anglo American (+0.46%) and BHP Billiton (+1.07%) trailed.

Hopes of economic stimulus eased pressure on mining stocks early in the session, with the upside coming despite an anticipated FED rate hike after the market close.

Risk Appetite Delivers Early GBP/USD Support

Following Tuesday’s gain, today’s shift in market risk sentiment provided further respite for the Pound.

At the time of writing, the Pound was up by 0.18% to $1.30673. On Tuesday, the Pound rose by 0.31% against the Dollar to end the day at $1.3042.

For the day ahead, much will now rest in the hands of the FED. The markets are expecting a 25-basis point hike. Of greater influence will be the interest rate and economic projections. Russia’s invasion of Ukraine is likely to push inflation even higher. The markets will be keen to see how the FED plans to respond.