Advertisement
Advertisement

Weaker Pound, Miners Lift FTSE 100, But Still Logs Weekly Loss

By:
Reuters
Updated: Oct 22, 2021, 20:41 UTC

(Reuters) -London's FTSE 100 rose on Friday, led by heavyweight mining and consumer staple stocks, as surveys showed the British economy unexpectedly regained momentum in October despite surging costs and worsening supply shortages.

FILE PHOTO: People walk through the lobby of the London Stock Exchange in London

In this article:

The export-heavy FTSE 100 ended 0.2% higher, with base metal miners and and precious metal miners up 0.2% and 2.4%, respectively.

Large dollar earning companies, spirits maker Diageo and Dove soap maker Unilever, were among top performers in the index, as the pound dipped following data that showed British retail sales unexpectedly fell for a fifth month in a row in September.

Investors also digested a recent statement by the Bank of England’s new chief economist Huw Pill that inflation could top 5% and the question of whether to raise interest rates was a “live” one at early November meeting.

“While many still argue that the price pressures are temporary, their expected duration and intensity are rising which is forcing policymakers to consider actions they’d clearly rather avoid,” said Craig Erlam, senior market analyst, UK & EMEA, OANDA.

“As the PMIs have shown, supply-side issues are taking their toll on activity, which won’t be helped by any surges in COVID cases as the northern hemisphere heads into the winter.”

Slowing recovery, supply chain worries and rate hike fears have capped the gains on the FTSE 100 recently, with the blue-chip index slipping 0.4% this week compared with the 0.6% rise among its European peers.

The domestically focussed mid-cap index advanced 0.1%.

JD Sports Fashion Plc added 1.9% as UBS also raised its price target on the stock of Britain’s largest sportswear retailer after it bought Cosmos Sport S.A.

Building materials supplier SIG jumped 5.6% after it forecast full year underlying operating profit to be ahead of market estimates.

London Stock Exchange Group PLC fell 6% after the financial markets infrastructure provider warned supply chain shortages could affect the timing of its technology spending.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Bansari Mayur Kamdar; Editing by Anil D’Silva and Krishna Chandra Eluri, Editing by William Maclean)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:

Did you find this article useful?

Advertisement