logo
  

FTSE 100 Edges Higher In Cautious Trade

U.K. stocks edged higher on Monday as surging commodity prices helped lift energy and mining stocks.

The upside remained limited as the pound drifted higher against its major counterparts in the wake of hawkish comments from Bank of England officials.

BoE policy maker Michael Saunders told The Telegraph on Saturday that inflationary surge "could become more persistent unless monetary policy responds."

"I think it is appropriate that the markets have moved to pricing a significantly earlier path of tightening than they did previously," Saunders said adding to expectations that the central bank is likely raise rates sooner than previously expected.

Interestingly, Saunders remarks came after a warning from Governor Andrew Bailey that inflation exceeding the BoE's goal of 2 percent will be damaging the economy.

The benchmark FTSE 100 rose 13 points, or 0.2 percent, to 7,108 after rising 0.3 percent on Friday.

Miners Anglo American, Antofagasta jumped around 3 percent while oil giant BP Plc advanced 1.8 percent and Royal Dutch Shell added 1.6 percent.

Lender HSBC climbed 1.4 percent, Lloyds Banking Group rose 0.6 percent and Barclays gained half a percent as traders ramp up bets of a November interest rate increase.

XP Power gained half a percent. The company said its revenue in the third quarter was $61.6 million pounds, a 5 percent decline year-on year on a constant currency.

However, orders for the quarter increased 87 percent on constant currency to 97.2 million pounds.

Ferrexpo jumped 4 percent after announcing inaugural decarbonisation targets.
Online fashion retailer ASOS plunged more than 9 percent after a profit warning.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT