FTSE 100 edge higher with HSBC and Melrose boost; miners hold gains in check
London's FTSE 100 index rose for a 2nd consecutive day Tuesday. Shares of Melrose, HSBC and precious metal miners helped to boost the index, but losses among precious metal miners held gains back.
HSBC, a heavyweight in the banking industry, rose by 1.8% following its appointment of David Lindberg as CEO of UK operations. Lindberg is a former NatWest executive and seasoned banker. The banks index rose by 1.2% thanks to its shares.
Melrose Industries, the owner of GKN Aerospace and Melrose Industries, grew by 5.3% while GE Aerospace increased its earnings forecast for the full year for the second time in just four months.
The benchmark FTSE 100 as well as the domestically focused FTSE 250 both rose by about 0.2%.
The Precious Metal Miners Index fell 11.1%, its worst day for over ten month. Gold and silver both dropped 5% and 7.0% respectively following a record-breaking run in this year.
Fresnillo dropped 14% and Endeavour Mining fell 9.8%. Both had their worst day for nearly four years. These stocks were among the worst performers on the FTSE 100.
The UK's borrowing from April to September was at its highest ever level, except during the peak of the Coronavirus pandemic. These data put further pressure on the finance minister Rachel Reeves, as she prepares her budget for next month.
The data comes also ahead of UK’s price report, due on Wednesday. This is expected to show that the inflation rate in September was 4%, the highest of all the big, rich economies around the world and twice the Bank of England’s target.
Governor Andrew Bailey, along with his colleagues, say that the outlook for inflation remains unclear. It is therefore difficult to predict when rates will be cut.
Serica Energy, a stock that is gaining in value among individual stocks, grew by 4.3% following the restart of production at Triton after a temporary shut down.
Segro's shares rose 2.9% after it reported an increase in rent signing during the third quarter.
Shawbrook, meanwhile, is targeting a London IPO market cap up to 2 billion pound ($2.68 billion), signaling a strong appetite from investors for the lender's listing.
(source: Reuters)
