UK Stocks Rebound on Bond Rally and Commodity Support, Lifting Risk Appetite
Market Overview and Key Drivers
Sept 3 (Reuters) - The UK's main stock indexes recovered on Thursday as a rally in global bonds ahead of a U.S. jobs report lifted risk sentiment, while firmer commodity prices provided additional support.
The blue-chip FTSE 100 index rose 0.1% to 10,767.57 points by 10:10 GMT, while the midcap FTSE 250 gained 0.1%, rebounding from a nearly one-month low.
Bond Market Rally and Gilt Yields
• Britain's 10-year gilt yields eased more than 29 basis points from an 18-year high of Wednesday, tracking a rally in global bonds and stocks ahead of U.S. non-farm payrolls data on Friday.
Sector Performance
Services and Confidence
• The services sector in the UK grew for the second month in a row in August and confidence rose, a survey showed.
Banking and Healthcare
Banking Sector
• Rate-sensitive banks rose 0.2%.
Healthcare Sector
• Healthcare stocks advanced 0.9% higher, supported by weaker sterling, with AstraZeneca up 1.3%.
Commodities and Miners
• Precious metal miners gained 0.9% as gold and silver prices rose. [GOL]
Telecom and Retail
Telecom Sector
• Telecom stocks Airtel Africa and Vodafone rose between 3.3% and 3.8%, leading sectoral gains.
Retail Sector
• Luxury retailer Burberry slipped 1.9%, as weak demand prospects weighed on the sector across Europe, sending the broader personal goods sector down 2.2%, leading sectoral losses.
Mid-Cap Movers
• Hilton Food Group jumped 16.7%, among the top gainers in the mid-cap index after raising annual profit forecast.
(Reporting by Anand Gopal in Bengaluru; Editing by Ronojoy Mazumdar)
