17th Feb 2014 11:01
LONDON (Alliance News) - The UK's main stock indices are pushing higher Monday, driven by corporate news and ratings changes amid a lack of economic indicators and a US holiday.
By mid-morning Monday, the FTSE 100 is up 0.8% at 6,719.00, the FTSE 250 is up 0.4% at 16,172.22, and the AIM All-Share is up 0.4% at 878.55.
The rise in precious metal prices so far this year has seen metal and mining stocks outperform the market and those stocks are leading gainers again Monday, with analysts beginning to upgrade stocks on the back of the improved price environment.
In the FTSE 100, Citi raised Randgold Resources to Neutral, from Sell, and the stock is a leading gainer, up 2.2%.
Industrial metal stocks are also outperforming, with Evraz up 1.8% and Ferrexpo up 2.1%. Anglo American has received various broker upgrades over the morning and is up 1.6%.
Outside of the metals, Real Estate Investment Trust Hammerson is a lead blue chip gainer, up 3.1% after reporting an increase in profit and rental income for 2013 as demand for its properties stayed strong.
The house builders are also performing well after more strong UK house price data. The Rightmove house price index showed average asking prices up 3.3% month-on-month in February, following a 0.1% increase in January. On a yearly basis prices are up 6.9%.
All the house builders are gaining, with the FTSE 350 sector index up 1.0%. Persimmon and Taylor Wimpey are both up 1.8%.
Gold has continued its recent recovery Monday, as the dollar remains under pressure. The gold price peaked in early trade at USD1,329.72 per ounce, a 15-week high. Silver has pushed to a three-month high, currently trading at USD21.685 per ounce.
"Gold and silver are beginning the new week of trading in the same way that they ended the old one: with price gains", commodity analysts at Commerzbank wrote in a note to investors.
Sentiment among investors has improved noticeably of late, the Commerzbank analysts said. In the week to February 11, net long positions in gold hit a 14-week high of 52,100 contracts, while Silver net long positions increased more than four-fold to 10,000 contracts. This momentum points to further price rises in the short term, says the bank.
In Italy, Matteo Renzi is expected to confirmed as new Prime Minister and asked to form a government later Monday. The current Mayor of Florence is currently in a meeting with the President.
With many focused on the unfolding events in Rome, European stocks markets are very quiet, with both the French CAC 40 and the German DAX flat.
With no afternoon data releases scheduled and the US markets closed, UK stocks look set to hold on to a positive start for the week, and a quiet afternoon is expected.
By Jon Darby; [email protected]; @jondarby100
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Related Shares:
Anglo AmericanRandgold ResourcesEvrazHammersonFerrexpoTaylor Wimpey