By Johann M Cherian (Reuters) -UK’s export-focused FTSE 100 advanced on Wednesday, led by banks and miners, as top metals’ consumer China took additional measures to reopen the economy. The large-cap FTSE 100 rose 0.7%, while the mid-cap FTSE 250 <.FTMC> added 0.2%, as of 0941 GMT. Miners climbed 1.2%, tracking copper prices that rose […]
By Johann M Cherian
(Reuters) -UK’s export-focused FTSE 100 advanced on Wednesday, led by banks and miners, as top metals’ consumer China took additional measures to reopen the economy.
The large-cap FTSE 100 rose 0.7%, while the mid-cap FTSE 250 <.FTMC> added 0.2%, as of 0941 GMT.
Miners climbed 1.2%, tracking copper prices that rose after China dismantled its COVID curbs to reopen the economy. [METL/]
Among individual stocks, China-focused insurers and banks such as Prudential and Standard Chartered also rose, gaining 2.9% and 0.8%, respectively.
China scrapped its quarantine rules for inbound travellers starting from Jan. 8 on Monday, but global markets turned jittery as COVID cases rose in the world’s second-largest economy. [MKTS/GLOB]
“The most important part is how China will react to the rise in cases,” said Ipek Ozkardeskaya, senior market analyst at Swissquote bank.
“If the cases don’t rise to the point that paralyses economic activity, then it is not going to be a big problem for market sentiment.”
On the blue-chip FTSE, the 200-day and 50-day moving average indicators intersected for the first time since July, referred to as the “golden cross,” and depicts bullish momentum in markets. The index is up 1.9% year-to-date.
The “golden cross” indicates that we are in a positive trend that is getting stronger because of the rising commodity and energy prices, and the trend could continue in the first half of 2023, Ozkardeskaya added.
Meanwhile, retail destinations enjoyed an almost 40% rise in shopper numbers during the first Christmas in three years without pandemic restrictions, as per Springboard. The sector climbed 0.7%.
Not all were gainers. Airlines like Wizz Air and easyJet slipped between 1.2% and 2%, respectively, after Italy’s antitrust regulator opened an inquiry into possible price-fixing for flights in and out of Sicily.
UK markets were closed on Monday and Tuesday for Boxing Day and Christmas Day holidays.
(Reporting by Johann M Cherian in Bengaluru; Editing by Krishna Chandra Eluri and Eileen Soreng)
