FTSE 100 hits over two-week high as miners soar
written by Bella Palmer
The blue-chip FTSE 100 added 0.8 per cent, reaching its highest level since November 15, while the more domestically-focussed FTSE 250 midcap index gained 0.5 per cent
The UK's FTSE 100 gained on Friday, with shares in industrial metal miners soaring on upbeat China data, starting December on an upbeat note after recording sharp gains in the previous month.
The blue-chip FTSE 100 added 0.8 per cent, reaching its highest level since November 15, while the more domestically-focussed FTSE 250 midcap index gained 0.5 per cent.
A private survey showed China's factory activity unexpectedly expanded in November, pushing China-exposed miners up 3.7 per cent.
Compounding gains, Antofagasta and Anglo American climbed 4.1 per cent and 6.2 per cent, respectively, after UBS upgraded the mining majors to a "buy" rating.
Precious metal miners gained 2.0 per cent, tracking an increase in precious metals prices.
On Friday's data front, mortgage lender Nationwide said British house prices increased unexpectedly in monthly terms for the third time running in November, adding to signs that the housing market downturn has eased.
The recent drop in market expectations for bank rate means mortgage rates now look set to drop further and faster than we previously had expected, said Gabriella Dickens, senior UK economist at Pantheon Macroeconomics.
Real estate, real estate investment trusts and homebuilders advanced between 0.4 per cent and 1.6 per cent.
Both the benchmark indexes posted monthly gains in November on expectations that major central banks were nearing the end of their interest rate hikes.
Yields on British government bonds dropped on Friday, while the pound reached a new 2-1/2-month high versus the euro. It was 0.3 per cent higher against the dollar.
Meanwhile, a final reading of November S&P Global/CIPS manufacturing Purchasing Managers' Index (PMI) came in at 47.2 against expectations of 46.7.
Looking ahead, comments from Fed Chair Jerome Powell, due later in the day, would be on investors' radar.
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