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FTSE 100 ends higher on miners boost, rates optimism

Published 19/08/2024, 05:33 pm
© 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
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By Khushi Singh and Purvi Agarwal

(Reuters) -London stocks ended higher on Monday, boosted by a rise in metal mining shares as prices of most base and precious metals advanced, while homebuilder Barratt gained after the competition regulator's condition was waived for its deal to buy Redrow.

The blue-chip FTSE 100 index was up 0.6%, led by a 2.4% gain in precious metal miners amid a recent record run in gold prices, which traded above $2,500 per ounce.

Industrial metal miners surged 2.1% after copper prices notched a 2-1/2 week high, with buying spurred by signs of improving demand in top consumer China and a sliding dollar.

Homebuilder Barratt Developments (LON:BDEV) jumped nearly 4% to top FTSE gainers 100 after a condition by the competition regulator for its acquisition of smaller rival Redrow was waived to satisfy a legal completion this week.

Real estate and real estate investment trust shares moved more than 1% higher after property website Rightmove said British estate agents reported higher buyer interest since the Bank of England's interest rate cut.

Aerospace and defence stocks, however, inched 0.4% lower, tracking losses in European defence stocks following reports the German federal government would reject new military aid requests for Ukraine due to spending cuts.

© 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

All eyes this week will be on the Jackson Hole economic symposium of the Federal Reserve, where Chair Jerome Powell will be speaking on Friday and investors will look for clues on the bank's interest-rate path.

The mid-cap FTSE 250 ended 0.5% higher. Plus500 (LON:PLUSP) was among the top gainers on the index, adding 4.1% after the online trading platform forecast its annual results to be above market view and also recorded a 13% jump in new customers in the first half of the year.

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