6th Oct 2014 16:16
LONDON (Alliance News) - UK stock prices on Monday continued the momentum from Friday and clawed back all the losses suffered earlier last week from the disappointing outcome of the European Central Bank meeting, gaining support from a strong performing mining sector.
Shares rose at the open Monday after a positive trading session in Asia, amid easing concerns over the pro-democracy protests in Hong Kong. The most recent developments have seen the Hong Kong government agree to talks with student protesters.
The blue-chip FTSE 100 index ended up 0.6% at 6,563.65 points, with the mid-cap FTSE 250 up 0.3% at 15,277.01 and the AIM All-Share index up 0.2% at 740.77.
European stock markets underperformed compared to London, with the CAC 40 index closing flat in Paris, while in Frankfurt, the DAX fell 0.1%.
US indices were trading mixed at the close of European trade. The DJIA was up 0.1%, while the S&P was trading flat and the Nasdaq Composite was down 0.3%.
Miners dominated the FTSE 100 winners, with Antofagasta, up 3.8%, Fresnillo, up 3.5% and Anglo American, up 2.6%, all notable risers. The FTSE 350 mining index rose 1.9%, the second best performing sector index. Analysts attributed the gains to some retracing of dollar strength and the easing of tensions in Hong Kong, which had raised concerns about China as a whole.
The dollar lost some ground against both the euro and the pound Monday, after its strong appreciation of late. The euro stood at USD1.2587 and the pound at USD1.6025 at the close of European trade.
Shares of the UK's biggest supermarket chain by market share, Tesco, ended the day amongst the biggest gainers in the FTSE 100, gaining 2.1%.
Tesco move to bolster its board, adding the chief executive of food services company Compass Group and a former CEO of furniture and household goods retailer IKEA Group as non-executive directors.
Compass CEO Richard Cousins and former IKEA CEO and President Mikael Ohlsson will join Tesco's board on November 1. The appointment of the pair marks the first board additions since Tesco's new Chief Executive Dave Lewis took the CEO job at the start of last month, and comes amid investigations into the company after it admitted it had overstated its profit guidance for the first half of its financial year.
Tesco's board has been criticised for not having enough retail experience and Shore Capital Head of Research Clive Black says the pair are "highly regarded by investors" and will be welcome additions.
Meanwhile, the price of Brent oil fell to a fresh two-year low at USD91.23 per barrel, depressing oil shares. Petrofac ended the day as the top faller in the blue-chip index, down 1.1%. Royal Dutch Shell 'A' shares fell 0.3%, while the 'B' shares ended down 0.5%.
Tuesday's economic calendar begins with the results of the Japanese central bank interest rate decision and monetary policy statement. The focus will then turn to Germany for the release of industrial production data for August at 0700 BST.
UK industrial and manufacturing production for August will both be released at 0930 BST, before US consumer credit change for August, to be released after the close of European markets at 2000 BST.
The corporate calendar is reasonably quiet, with a third-quarter production report from FTSE 250-listed miner Ferrexpo and full-year results from FTSE Smallcap-listed St Ives.
By Neil Thakrar; [email protected]
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Related Shares:
TescoPetrofacAnglo AmericanSt. Ives PLCFerrexpoFresnilloCompass Group