FTSE 100 rises on China stimulus measures
written by Bella Palmer
The blue-chip FTSE 100 was 0.3% higher as China unveiled broad stimulus measures, including rate cuts and moves aimed at reviving the stock market
The UK's FTSE 100 rose on Tuesday as markets cheered latest stimulus measures in China that lifted shares of miners and luxury-focused retailers, while midcaps declined led by losses in utilities.
The blue-chip FTSE 100 was 0.3% higher as regulators in China unveiled broad stimulus measures, including rate cuts and moves aimed at reviving the stock market, in an attempt to spark growth in the country's wavering economy.
Industrial metal miners climbed almost 5% to nearly one-month high, as metal prices increased on expectations of higher demand from the top consumer China.
Shares of miners Anglo American Antofagasta and Glencore gained between 4% and 7%.
Burberry added more than 2%, gaining along with other European luxury companies, buoyed by hopes of demand revival in the Chinese market.
FTSE 250 midcap index declined 0.4% tracking weakness in Drax that slipped 2.6% after the British power generator said it could invest up to $12.5 billion developing biomass plants with carbon capture and storage in the U.S. over the next decade.
Smiths Group declined 5.2% after the engineering group announced acquisitions of two North American companies, while posting a slight miss in its annual profit.
Dunelm also slipped 6.3%, as top shareholder Will Adderley and his private investment firm sold a nearly 5% stake in the homeware retailer, as per bookrunner Barclays.
In an interview published Tuesday, BoE Governor Andrew Bailey said that he was "very encouraged" by the downwards path of inflation and that interest rates were gradually heading lower.
Meanwhile, British Prime Minister Keir Starmer said that the cost of fixing shortfalls in the public finances would be shared fairly and that all his government's policies would still be properly funded.
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