Published by linker 5
Posted on February 8, 2021
By Amal S
(Reuters) – London’s FTSE 100 snapped a three-day losing streak on Monday as mining and energy stocks tracked strong gains in commodity prices, while Arrow Global surged after private equity firm TDR Capital raised its buyout offer for the asset manager.
The commodity-heavy FTSE 100 was up 0.5%, with miners Anglo American, Rio Tinto and BHP Group as well as oil producers BP and Royal Dutch Shell being among the top boosts.
Financial firms were also among the biggest gainers in morning trading.
“The UK commodities are higher this morning, which is tied into the hopes that a $1.9 trillion U.S. stimulus package is going to passed without the help of Republicans. I think that is the underlying market driver,” said Connor Campbell, analyst at Spreadex.
The FTSE 100 has recovered nearly 33% from its March 2020 lows, led by a raft of stimulus, but a surge in infections and widespread lockdowns recently have slowed economic growth. The index has also lagged its U.S. and European peers, which are up 77% and 52%, respectively.
All eyes this week will be on British GDP and manufacturing data for clues about the pace of the economic rebound. Global stock markets are also counting on a $1.9 trillion U.S. COVID-19 aid package to be passed as soon as this month.
Shares of British retailers were subdued in early deals as a report said the government was planning to tax retailers and tech companies whose profits soared during the COVID-19 pandemic.
The mid-cap FTSE 250 index fell 0.2%, led lower by technology-related firms.
Arrow Global Group surged 26.7% after TDR Capital made a fourth offer for the European investor and asset manager at a price of 305 pence per share.
Rolls-Royce shed 1.4% after the aero-engine maker said it was proposing a two-week operational shutdown of its civil aerospace unit over the summer.
(Reporting by Amal S in Bengaluru; editing by Uttaresh.V)
Explore more articles in the Trading category
