LONDON MARKETS: FTSE 100 Hits Record High As Anglo American Leads Rally In Miners
March 16 2017 - 5:19AM
Dow Jones News
By Carla Mozee, MarketWatch
Bank of England policy decision on deck
Stocks in the U.K. charged up to record levels Thursday, with
mining shares invigorated by a pullback in the dollar and a major
investment in Anglo American PLC, with the gains coming before the
Bank of England releases its policy decision.
The FTSE 100 jumped 0.7% to 7,420,49, on track to surpass its
record closing high of 7,382.90 logged on March 1. The index on
Wednesday finished up by 0.2%.
The index logged a record intraday high of 7,423.20 Thursday as
all sectors bounced up, led by the basic materials and oil and gas
groups. Those sectors make up a more than 20% weighting on the
British benchmark, according to FactSet data.
Anglo American PLC (AAL.LN) topped the gauge as its shares
jumped 7.7%. They surged 10% at the open after billionaire Anil
Agarwal's family trust, Volcan Investments Ltd., bought a 12% stake
(http://www.marketwatch.com/story/indias-agarwal-takes-12-stake-in-anglo-american-2017-03-16)
in the producer of iron ore, copper and other metals. The purchase
makes Volcan the second-biggest investor in Anglo American.
Other metal producer stocks pushed higher alongside Anglo as the
sector was also aided by a pullback in the dollar . The decline
came after U.S. Federal Reserve Chairwoman Janet Yellen late
Wednesday signaled the central bank will remain on a gradual pace
of raising interest rates
(http://www.marketwatch.com/story/fed-raises-interest-rates-by-a-quarter-point-sees-two-move-moves-this-year-2017-03-15).
"Gold has been a clear winner from the U.S. dollar's sharp
selloff following the Fed's rate hike, as the precious metal halts
its downtrend to post fresh 2-week highs," said Accendo Markets
analysts Mike van Dulken and Henry Croft in a note.
Read:Why the Fed interest-rate hike fueled a rally in gold
(http://www.marketwatch.com/story/why-the-fed-interest-rate-hike-fueled-a-rally-in-gold-2017-03-15)
Gold futures climbed 2% to trade above $1,224 an ounce.
Among miners, shares of Randgold Resources PLC (RRS.LN) popped
up 5.5%, Fresnillo PLC (FRES.LN) soared 5.8%, and Antofagasta PLC
(ANTO.LN) tacked on 5.7%.
Also in the resources sector, BHP Billiton PLC (BLT.LN) (BHP.AU)
(BHP.AU) leapt 4.8%, Glencore PLC (GLEN.LN) rose 4.6%, and Rio
Tinto PLC (RIO) (RIO) (RIO) picked up 4.4%.
BOE rate call: The central bank is expected to leave the U.K.'s
benchmark interest rate at a record low of 0.25%, although there's
been an rise in inflationary pressures. The BOE has been watching
developments in the economy as the country moves closer to starting
the process of leaving the European Union.
The pound traded at $1.2267, compared with $1.2291 late
Wednesday in New York ahead of the BOE's policy decision, due for
release at 12 p.m. London time, or 8 a.m. Eastern Time.
Other movers: J Sainsbury PLC (SBRY.LN) shares shed 0.5% as the
company said supermarket sales fell 0.1%
(http://www.marketwatch.com/story/sainsburys-supermarket-sales-dip-2017-03-16)
in the nine weeks to March 11.
(END) Dow Jones Newswires
March 16, 2017 05:04 ET (09:04 GMT)
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