July 24, 2018 / 8:56 AM / 4 months ago

FTSE on the rise as banks, miners rally

MILAN (Reuters) - Britain’s top share index rose on Tuesday as banks and mining companies rallied, joining in with a broader rise across European stocks as sectors bruised by trade uncertainty regained some ground.

FILE PHOTO - A man shelters under an umbrella as he walks past the London Stock Exchange in London, Britain August 24, 2015. REUTERS/Suzanne Plunkett

The FTSE ended the session up 0.7 percent at 7,709.05 points, while the mid-cap index added 0.4 percent, held back by a number of stocks falling on the back of earnings updates.

Miners and financials added the most to gains. Heavyweights BHP (BLT.L), Anglo American (AAL.L) and Glencore (GLEN.L) led the index with gains of more than 5.6 percent as copper prices rebounded on concerns over possible disruptions to supply from the world’s biggest copper mine.

Banks were supported by a surge in government bond yields on exceptions over monetary policy tightening in the United States and Japan with RBS (RBS.L), HSBC (HSBA.L), Barclays (BARC.L) and Lloyds (LLOY.L) trading 1.1 to 3.4 percent higher.

The FTSE 100 did slightly underperform Europe, returning to trade in its tight range after touching its highest level in more than a month due to uncertainty over the outcome of Brexit talks.

“There doesn’t look like there’s much on the agenda to help the FTSE with its momentum problem, unless, perhaps, the pound suffers in the aftermath of the day’s US... PMIs” said Spreadex analyst Connor Campbell.

Aside from the risk-on rise across cyclical stocks, price moves were relatively modest on the FTSE as the focus fell on smaller firms’ earnings updates.

On the mid cap index, Spectris (SXS.L) dropped more than 9 percent with analysts disappointed the electrical components supplier provided no further details on cost saving programmes.

Superdry (SDRY.L) was another big faller, down 9.5 percent after co-founder Julian Dunkerton sold down his stake in the fashion retailer, prompting Liberum to cut its rating to hold.

Shares in soft drinks company Britvic (BVIC.L) and lender Close Brothers (CBRO.L) rose 4.5 percent and 2.8 percent respectively well-received trading updates.

Reporting by Danilo Masoni and Kit Rees; Editing by Ros Russell

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