FTSE 100 poised to end six-day slump as miners rally

FTSE Futures Updates

Britain’s FTSE 100 inched upward on Monday, poised to conclude a streak of six consecutive days of declines, as robust performances from mining stocks, AstraZeneca, and Rolls-Royce counterbalanced general apprehension ahead of the upcoming UK inflation data.

The blue-chip FTSE 100 index rose 0.1% to 10,757.91 points by 1022 GMT, while the mid-cap FTSE 250 slipped 0.2%.

  • AstraZeneca opens new tab rose 0.9% after reporting results from two of its late-stage lung cancer trials. The drugmaker announced that its Tagrisso-Orpathys combination and the Enhertu, developed in partnership with Daiichi Sankyo, achieved significant objectives. However, it has decided to discontinue a separate late-stage study involving volrustomig in conjunction with chemotherapy for patients suffering from metastatic non-small cell lung cancer.
  • Miners provided a significant uplift to the FTSE 100 index as gold prices stabilised and copper commenced the week on a positive note. Fresnillo increased by 1.9%, while Antofagasta saw a rise of 1.5%. Glencore gained between 1.3% and 1.8%, while Anglo American experienced a similar increase.
  • Rolls-Royce experienced an increase of 1.8% following upward revisions of price targets by Morgan Stanley and Citigroup.
  • On the downside, Unilever fell 1.3%, Tesco lost 1.6%, and BP slipped 0.8%, making them among the biggest drags on the blue-chip index.
  • Global shares experienced a modest increase, while the dollar declined toward two-month lows following a series of disappointing U.S. economic indicators, notably an unanticipated decline in retail sales. This development prompted markets to scale back expectations for a forthcoming rate hike from the Federal Reserve.
  • Traders were closely monitoring UK job market data scheduled for release on Tuesday, as well as inflation data on Wednesday, for additional insights into the Bank of England’s policy trajectory.
  • In a separate development, British employers continued to exhibit hesitance in hiring, while business confidence lingered close to its lowest points outside the COVID-19 pandemic, as indicated by a survey released by the Chartered Institute of Personnel and Development.
  • In the housing market, asking prices for newly listed homes experienced their most significant decline in August since 2018, according to property website Rightmove.
  • Fitch upheld Britain’s sovereign credit rating at “AA-“, accompanied by a stable outlook, as announced late on Friday.
  • Among other stocks, Time Finance opened new tab jumped 9.5% after investment vehicle Bentley Park Ltd. agreed to acquire the SME lender for about £55.1 million ($74.75 million).