London open: Stocks recover as mining sector rallies
By Michele Maatouk
Date: Wednesday 05 May 2021
(Sharecast News) - London stocks rose in early trade on Wednesday, having sold off in the previous session after US Treasury Secretary Janet Yellen said interest rates were likely to rise.
At 0910 BST, the FTSE 100 was up 1% at 6,991.97, underpinned by strength in the heavyweight mining sector.
Spreadex analyst Connor Campbell said: "A bait and switch from US Treasury Secretary Janet Yellen helped the European markets try and recover some of Tuesday's losses after the bell.
"Yellen had said on Tuesday that 'it may be that interest rates have to rise somewhat' to prevent the post-covid economy from overheating. A statement, obviously, that didn't go down well with investors, who were already fretting over the impact of the ongoing chip shortage on tech and car stocks.
"Such was the reaction that the former Fed chair issued a correction, of sorts, assuring the markets that a rate hike is neither something she is 'predicting or recommending'.
"If Europe's open is anything to go by, that has been enough to put the issue to bed - for now, anyway."
In equity markets, miners were the standout gainers, with BHP, Glencore, Rio and Anglo American all higher amid rising metals prices.
Croda was also in the black after the speciality chemicals firm announced a strategic review of its Performance Technologies and Industrial Chemicals (PTIC) businesses.
Travel stocks were on the rise again, with Tui, cruise operator Carnival and Upper Crust owner SSP all higher as investors cheered the prospect of foreign travel opening up again.
On the downside, Just Eat Takeaway and online supermarket Ocado - both of which have benefited from lockdowns and restrictions - were the biggest fallers.
Virgin Money slumped despite saying that first-half profit more than doubled as Covid-19 impairment charges tumbled.
Market Movers
FTSE 100 (UKX) 6,991.97 0.99%
FTSE 250 (MCX) 22,422.16 0.41%
techMARK (TASX) 4,323.70 0.51%
FTSE 100 - Risers
CRH (CDI) (CRH) 3,550.00p 3.68%
NATWEST GROUP PLC ORD 100P (NWG) 198.70p 2.95%
BHP Group (BHP) 2,257.00p 2.75%
Melrose Industries (MRO) 163.40p 2.70%
Croda International (CRDA) 6,826.00p 2.58%
Glencore (GLEN) 303.85p 2.58%
Rio Tinto (RIO) 6,275.00p 2.57%
Anglo American (AAL) 3,154.50p 2.52%
Barclays (BARC) 175.10p 2.46%
Whitbread (WTB) 3,279.00p 2.18%
FTSE 100 - Fallers
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,119.00p -2.08%
Ocado Group (OCDO) 1,967.50p -1.82%
British American Tobacco (BATS) 2,691.00p -0.88%
SEGRO (SGRO) 1,001.50p -0.69%
Land Securities Group (LAND) 726.20p -0.68%
B&M European Value Retail S.A. (DI) (BME) 559.80p -0.46%
Imperial Brands (IMB) 1,531.00p -0.39%
Unilever (ULVR) 4,188.00p -0.38%
Reckitt Benckiser Group (RKT) 6,439.00p -0.05%
Admiral Group (ADM) 3,112.00p 0.00%
FTSE 250 - Risers
Tullow Oil (TLW) 55.84p 3.48%
TUI AG Reg Shs (DI) (TUI) 438.20p 3.15%
Babcock International Group (BAB) 290.20p 2.73%
RHI Magnesita N.V. (DI) (RHIM) 4,586.00p 2.69%
Carnival (CCL) 1,640.20p 2.14%
John Laing Group (JLG) 311.20p 2.03%
JPMorgan Japanese Inv Trust (JFJ) 654.00p 2.03%
SSP Group (SSPG) 323.30p 1.99%
IP Group (IPO) 127.60p 1.92%
Playtech (PTEC) 479.60p 1.83%
FTSE 250 - Fallers
Virgin Money UK (VMUK) 190.35p -5.16%
Chemring Group (CHG) 255.00p -3.95%
Just Eat Takeaway.Com N.V. (CDI) (JET) 7,119.00p -2.08%
Jlen Environmental Assets Group Limited NPV (JLEN) 108.20p -1.99%
PureTech Health (PRTC) 396.00p -1.74%
Greencore Group (CDI) (GNC) 158.90p -1.73%
Workspace Group (WKP) 837.00p -1.53%
Domino's Pizza Group (DOM) 377.80p -1.51%
PZ Cussons (PZC) 262.00p -1.50%
UDG Healthcare Public Limited Company (CDI) (UDG) 869.50p -1.25%
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