FTSE 100 gains amid fresh China stimulus hopes
Mining shares rose on Thursday as hopes rose that Chinese economic growth would drive greater demand for metals.
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Your support makes all the difference.The FTSE 100 closed slightly higher on Thursday following reports that China would soon announce another economic stimulus package after already announcing one earlier this week, pushing up European stocks.
London’s blue-chip index rose 16.21 points, or 0.20%, to end the day at 8284.91, with most of its early gains cancelled out by the close.
Miners made strong gains, amid hopes that Chinese economic growth would drive greater demand for metals.
Fawad Razaqzada, an analyst at City Index, said: “The combination of China’s aggressive stimulus measures and easing monetary policies from central banks worldwide has fuelled optimism among stock market bulls.”
However, oil majors BP and Shell shares plunged after the price of Brent crude fell on the news that Saudi Arabia is ready to abandon an unofficial target for oil prices, in turn weighing on the FTSE 100.
At the end of the day in Europe Frankfurt’s Dax index rose 1.59%, while the Cac 40 in Paris had closed up 2.16%.
In New York a little while after markets had closed in Europe the S&P 500 had gained 0.33%, while the Dow Jones was 0.55% higher.
On currency markets the pound had gained 0.76% against the dollar at 1.3424 and had risen 0.28% against the euro at 1.2002.
In company news, South West Water owner Pennon announced rising cases of sewage spills and a hit of about £16 million from the parasite contamination crisis in Devon earlier this year.
The group said it racked up the costs from the contamination incident in Brixham, after paying compensation to affected households, providing bottled water for two months, and after “extensive” action to clean the network.
The outbreak in May left some people in hospital and hundreds of others were ill after contamination of the water supply by cryptosporidium, a parasite which causes sickness and diarrhoea.
Shares fell in morning trading before recovering to finish 0.75% down.
Elsewhere, pub and bar giant Mitchells & Butlers revealed slower sales growth in the latest quarter after damp summer weather and disruption from UK riots in August.
But the All Bar One and Toby Carvery owner said it expects to deliver full-year results at the “upper end” of analyst expectations.
The London-listed firm said like-for-like sales have grown by 2.5% so far over the latest quarter.
Shares rose 2.53% on Thursday.
Brent crude oil futures were down 2.246% to 71.810 US dollars as markets were closing in London.
The biggest risers on the FTSE 100 were Prudential, up 41p to 683.2p, Antofagasta, up 120p to 2040p, Anglo American, up 135.5p to 2433.5p, Standard Chartered, up 40p to 803.2p, and Glencore, up 19.7p to 423.05p.
The biggest fallers on the FTSE 100 were Shell, down 116p to 2416p, BP, down 16.4p to 383.85p, British American Tobacco, down 84p to 2758p, BAE Systems, down 32.5p to 1241.5p, and Tesco, down 7.8p to 358.1p.