The FTSE 100 experienced a positive trading day, rebounding from a previous loss, driven primarily by significant gains in the mining and energy sectors. Surging metals prices, particularly copper, fueled the rally in mining stocks, while rising crude prices supported energy stocks. Financials showed mixed performance, while utilities lagged.
- The FTSE 100 traded 0.5% higher.
- Mining stocks saw substantial gains, led by Antofagasta, Anglo American, Glencore, and Rio Tinto, due to a surge in copper prices.
- Precious metals miners, including Endeavour and Fresnillo, also rallied as gold and silver prices hit new highs.
- Energy stocks, Shell and BP, added support due to strengthened crude prices.
- Lloyds was volatile despite a share buyback announcement and higher annual profit.
- Utilities, like Severn Trent, National Grid, Centrica, and United Utilities, lagged.
- The Federal Reserve kept rates on hold, with Chair Jerome Powell citing improving economic and labour market conditions.
The strong performance suggests a market reacting positively to global commodity price movements. The surge in mining and energy sectors indicates confidence in the demand for raw materials and energy, potentially driven by improving economic conditions. However, the mixed performance of financials and the underperformance of utilities highlight the presence of sector-specific factors and potential concerns about interest rate sensitivity and regulatory environments. Overall, the market demonstrates a degree of sector-specific differentiation amidst broader positive sentiment.