📈 Will you get serious about investing in 2025? Take the first step with 50% off InvestingProClaim Offer

London stocks rebound on metal miner rally ahead of UK election

Published 03/07/2024, 05:44 pm
Updated 04/07/2024, 02:25 am
© Reuters. FILE PHOTO: Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo
UK100
-
HG
-
FTMC
-

By Purvi Agarwal and Roshan Abraham

(Reuters) -British stocks closed higher on Wednesday, boosted by metal miners ahead of the UK parliamentary election on Thursday that the Labour Party looks poised to win.

The blue-chip FTSE 100 gained 0.6% and saw the best day in nearly two weeks after closing at a more than two-month low in the previous session.

The mid-cap FTSE 250 jumped 1.7% in its best day this year, snapping a three-session losing streak.

The market's attention is riveted on the UK vote, where opinion polls indicate it's almost a sure bet the Labour party will seize power, ending 14 years of Conservative government.

"Market mood is fairly positive heading into the election as Labour is pretty close to securing their large depth of majority ... we have historically seen a fairly decent run up on the back of a new government," said Christopher Peters, trading floor manager at Accendo Markets.

"There's reasons for investors to cheer as long as we get some certainty on Friday, which looks increasingly likely."

However, the full reaction to the election's outcome will likely be seen only on Friday, Peters said.

Uncertainty over the UK vote has been among the reasons the FTSE 100 has eased about 3.5% from its record high in May.

Precious metal and industrial metal miners were among the top gainers, rising 4.0% and 2.4% respectively, tracking higher gold and copper prices. [GOL/][MET/L]

Also on the radar, is non-farm payrolls data in the U.S. due on Friday, which will provide more clues on the Fed's monetary policy path. Employment data on Wednesday raised hopes for a September start to U.S. monetary policy easing.

© Reuters. FILE PHOTO: Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo

Among individual stocks, British Airways owner IAG (LON:ICAG) gained 5.5% after the EU antitrust regulator approved Lufthansa's purchase of 41% of Italy's ITA Airways, boosting rival IAG's hopes for its takeover of Air Europa.

JD Sports slumped 4% to hit the bottom of the FTSE 100 index, after Barclays (LON:BARC) downgraded the retailer to "underweight" from "equal-weight".

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.