Wed, 15th Aug 2018
The FTSE 100 gained 0.4 percent during the early hours of trading, as miners and banks both showed strength. Britvic and Close brothers also made gains after their trading updates, while Spectris’ share price slipped on cost saving disappointments.
Trading activity overall has been quiet on the FTSE 100, as investors wait to see the outcome of the Brexit talks. The uncertainty has kept the index within tight bounds, and put the focus back onto individual company fundamentals. Banks were supported thanks to a surge in government bond yields. There is the expectation that there will soon be some monetary policy tightening in Japan and the United States. Shares in Lloyds and Barclays were both boosted by this, gaining 1.4 and 0.7 percent respectively.
Mining companies also offered support for the index, with Rio Tinto, Glencore and BHP all gaining more than one percent thanks to an increase in copper prices. There are fears that copper supplies at the world’s biggest mine could be disrupted.
Elsewhere, broker recommendations fuelled the biggest price changes, with Royal Mail gaining 1.9 percent following an upgrade from HSBC, and ITV gaining 0.8 percent thanks to a price target upgrade from JP Morgan.
In the mid-caps, Spectris fell by 0.8 percent, as analysts said that they were disappointed that the electrical components supplier had provided no further details on their cost-saving programs. Another major loser was Superdry, who lost 6.9 percent after a downgrade from Liberum, following their news that the company’s co-founder had sold down its stake in the fashion brand.