Investing
Commodity prices boost London shares; Melrose jumps on Ergotron unit sale
Global Banking & Finance Review®
Company
By Anisha Sircar
(Reuters) – London’s FTSE 100 rose more than 1% on Monday, boosted by miners and oil majors on the back of strong commodity prices, while jet and auto parts supplier Melrose Industries jumped after agreeing to sell its Ergotron unit.
The blue-chip FTSE 100 and the domestically oriented FTSE 250 advanced 1.4% each as trading resumed after a long holiday weekend. Markets were closed on Thursday and Friday for Queen Elizabeth’s Platinum Jubilee.
Brent crude rose above $120 a barrel after Saudi Arabia hiked prices for its crude sales in July. Oil majors BP and Shell added 2.9% and 2.2%, respectively. [O/R]
“Markets are unfazed by the political shenanigans unfolding at Westminster – there’s a vast ocean of blue water between a vote of no confidence being called, and a new prime minister picking out wallpaper for number 10,” said Danni Hewson, a financial analyst at AJ Bell.
The pound rose more than half a percent, hours before Prime Minister Boris Johnson faces a confidence vote called by members of his Conservative Party.
“An upbeat U.S. futures market is leading the way and UK markets are more than happy to play catch-up,” Hewson said.
The FTSE 100 has risen 3.3% this year, aided by surging oil and metal prices, while the midcap FTSE 250 has fallen 13% on concerns that rapid inflation could tip the economy into recession.
This week, investor focus is on a European Central Bank policy meeting on Thursday and U.S. consumer price data out on Friday.
On Monday, nearly all sectors on the FTSE 100 traded in positive territory, with the biggest boosts coming from homebuilders and miners.
Melrose Industries Plc rose 4.4% after agreeing to sell its Ergotron unit to funds managed by U.S.-based the Sterling Group for $650 million.
(Reporting by Anisha Sircar in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization.
Commodity prices refer to the market prices for raw materials like oil, metals, and agricultural products, which fluctuate based on supply and demand.
Brent crude is a major trading classification of crude oil originating from the North Sea, used as a benchmark for oil prices globally.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power over time.
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