FTSE 100 Gains as Healthcare and Beverage Stocks Lead Before US Payrolls Data
Market Overview and Key Drivers
July 2 (Reuters) - London's FTSE 100 climbs, supported by defensive healthcare and beverage stocks, as investors awaited U.S. payrolls data for clues on the Federal Reserve's policy path.
The blue-chip FTSE 100 index rose 0.5% to 10,532.93 points by 1153 GMT, while the midcap FTSE 250 slipped 0.2%.
Sector Performance
Healthcare Stocks
• The healthcare sub-index rose 1.4%, boosted by AstraZeneca, which gained 1.4% after striking a deal worth up to $1.77 billion with China's CSPC Pharmaceutical Group to develop kidney disease treatments.
Consumer and Beverage Stocks
• Consumer-focused stocks including Tesco, Coca-Cola HBC, and J Sainsbury rose between 2.6% to 1.8% each.
Upcoming US Payrolls Data
Market Expectations
• The U.S. non-farm payrolls report is due at 8:30 a.m. ET, with investors watching for signals on the health of the labor market and monetary policy path.
• Economists expected the Labor Department's closely watched employment report to keep a September interest rate hike from the Federal Reserve on the table amid rising inflation from the U.S.-led war with Iran.
Geopolitical and Global Factors
US-Iran Relations and Oil Prices
• On the geopolitical front, Iran and the U.S. concluded a round of indirect talks in Doha on Wednesday without any clear breakthrough toward a lasting peace agreement, still oil prices slid as supply concerns around Strait of Hormuz eased. [O/R]
Individual Stock Movers
UK Retail and Energy Stocks
Currys
• Among individual UK stocks, British electricals retailer Currys fell 3.7% after it warned that a global memory-chip shortage could drive up prices for smartphones, laptops and other electronics later this year.
Genel Energy and Capricorn Energy
• Shares of Genel Energy rose 4.6% after the Kurdistan-focused oil and gas producer agreed to acquire Britain's Capricorn Energy in a $360 million all-cash deal.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Tasim Zahid)
