FTSE Cedes New Quarter Gains To Close In The Red -

FTSE Cedes New Quarter Gains To Close In The Red

Apr 02, 2024Jeremy ParkinsonFinance, No picture0

Image Source: Pexels
British stocks opened the second quarter on a high note, buoyed by an increase in energy and metal mining companies. Additionally, lender HSBC saw a rise in its stock price after announcing the sale of its Canadian division. The leading sectors saw gains, with precious metal miners increasing by 2.7% as the dollar and Treasury yields remained strong following positive U.S. data, raising questions about the beginning of an interest rate cut cycle. Industrial metal miners also saw a 2.4% increase, driven by worries about limited raw material supplies and better demand outlooks that pushed copper prices up. Additionally, oil and gas stocks rose by 2%, in line with the higher crude prices. With the boost to commodity prices the list of top-performing stocks was largely dominated by commodity linked companies. Brent crude saw a 0.7% rise to $87.97 per barrel, reaching a peak of $89.08 earlier, driven by positive outlooks on increasing demand in the US and China, as well as worries about supply disruptions caused by escalating geopolitical tensions in the Middle East. Companies such as Fresnillo (8%+), Anglo American (4%+), Shell (3.5%+) all saw notable gains in their stock prices.On the fundamental front In March, British house prices experienced a decrease of 0.2% following a 0.7% rise in the previous month, which defied the predictions of economists in a Reuters poll who had expected a 0.3% increase, according to data from mortgage lender Nationwide released on Tuesday. Compared to the previous year, house prices were 1.6% higher, showing a faster growth rate than the 1.2% increase in February but falling short of economists’ expectations of a 2.4% rise. As such Persimmon (-3.2%) and Taylor Wimpey (-3%) led the reversal lower, as well as other real estate developers such as Land Securities and Unite Group, however Reckitt Benckiser claimed the bottom spot on the blue chip index shedding just shy of 5% on the session
FTSE Bias: Bullish Above Bearish below 7900