Benchmark and other broader indexes at the London Stock Exchange staged a smart recovery at the start of a truncated trading week as the onset of a new month heralded positive economic indicators for investors to digest, strategize and bet on. FTSE 100 rose by more than 1.2 percent to trade at 7100 levels as buoyant factory and housing growth indicators reignited buying interest and only less than a tenth of the constituents missed the advance.
U.K.’s Manufacturing PMI of 65.6 reinforced the pace of recovery in factory growth triggered by relaxations in virus fight related restrictions, resurgence of demand, revival in labour market, reduced supply chain disruptions , capacity expansions and overall climate of optimism.
House builder stocks like Barratt Developments PLC and Persimmon PLC rallied more than 2 percent amidst Nationwide Building Society pegging the annual house price growth in May at 10.9 percent, the highest since August 2014 as well as predicting continued buoyancy in the housing market.
Mining stocks like Rio Tinto PLC, Anglo American PLC, Glencore PLC, Antofagasta PLC and BHP PLC have all risen more than 3 percent, boosted by higher commodity prices.
HSBC Holdings PLC declined by almost 0.80 percent.
Sterling today hit a three – year high of $1.425 on the prospect of a spectacular economic recovery, as the country braces ahead for the planned relaxations in pandemic restrictions in the third week of June.
Ten Year Bond yields hardened to 0.807 percent from 0.801 percent on the previous day, whereas three month rates slipped from 0.080 percent to 0.075 percent.
On Friday, FTSE 100 had added just 0.04 percent as markets worldwide fretted about inflation and immediate policy tightening.
As FTSE 100 continues its tryst with May’s economic data, unlocking and rebounding sentiments may soon forcefully set it on course to a more decisive trajectory.
Market Analysis
Factories, Housing Buoyancy Prod U.K Stocks
2021-06-01 10:24:38
