Commodity-connected shares drive FTSE 100 better on China demand from customers hopes

March 1 (Reuters) – The UK’s FTSE 100 started off March on a solid footing as higher commodity prices lifted mining shares immediately after producing exercise in prime metals client China expanded at the quickest tempo in over a decade.

The blue-chip index (.FTSE) closed .5% bigger on Wednesday, bouncing following its steepest single-working day fall in a few months and outperforming most European indexes.

The industrial metal miners index (.FTNMX551020) surged 3.8%, its most significant one particular-working day get since early November.

Metals prices rose just after information showed a larger sized-than-envisioned enlargement in China’s manufacturing exercise next the lifting of COVID-19 limitations previous yr.

“China’s unwinding of its zero tolerance to COVID method has unleashed a wave of pent up demand from customers from the world’s 2nd major economy,” claimed Victoria Scholar, head of expenditure at Interactive Trader.

“China-sensitive sectors are benefiting from this.”

Glencore (GLEN.L), Anglo American (AAL.L), Antofagasta (ANTO.L) and London-listed shares of Rio Tinto (RIO.L) acquired between 3.3% and 4.6%, tracking increased copper charges.

Equities also gained a boost from sterling trimming most of its gains after Financial institution of England Governor Andrew Bailey stated very little experienced been made a decision in phrases of no matter if interest costs would need to rise again.

Engineering agency Weir Team (WEIR.L) obtained 6.3%, the finest blue chip performer on strong full-12 months earnings.

Reckitt Benckiser (RKT.L) rose 1.5% just after the Dettol and Lysol cleansing goods maker defeat comprehensive-12 months like-for-like web profits anticipations.

Aston Martin (AML.L) was 3.2% increased as the luxury carmaker expects to convert free dollars flow good in the next 50 % of the 12 months.

Persimmon (PSN.L), even so, dropped 12% after the homebuilder warned of decreased profit for 2023 and slice its annual dividend by 75%, producing it the worst performer on the index.

Coupled with British household rates dropping by the most in 10 a long time, other homebuilders like Barratt Developments (BDEV.L) and Taylor Wimpey (TW.L) fell by 4% each and every, primary the family merchandise and dwelling building sector (.FTNMX402020) down 5.%.

Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru Modifying by Sherry Jacob-Phillips, Kirsten Donovan

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