The FTSE 100 index jumped by more than 0.20% on Tuesday led by mining stocks after positive global manufacturing PMI data. The index is up by more than 8% year-to-date. Other European indices like the DAX and CAC 40 also tilted higher.
UK Data Outlook
Investors in the United States and Europe are intensely waiting for the US jobs data to be released later this week. They are also eyeing the upcoming meetings of the Fed and the European Central Bank. Inflation fears have surged as the Fed are expected to release an official statement on its monetary policy later in the week.
UK recorded no new corona virus cases on Wednesday since the start of the global pandemic. Prime minister, Boris Johnson, is under immense pressure on whether to lift the laid-out corona virus restrictions and prioritize the economy or stay cautious amid the infections surge.
UK house prices have increased by their fastest annual rate in seven years. According to the Nationwide Building Society, this has been boosted by the high demand for bigger homes outside the city. The average house price increased by 10.9% in May from the previous 7.1% last month. This was the fastest growth rate since 2014. The UK Nationwide house price index increased by 1.8%.
The domestically focused mid-cap, FTSE 250 index was hovering near its highest level after recording a o.3% increase.
The Royal Mail will return to the FTSE 100 index later this month. Royal Mail’s stock closed 2.6% higher last night. The company’s shares were down by 124.3p in April 2020 due to the pandemic. However, as lockdown restrictions eased there was a rise in internet shopping and parcels. Royal Mail record sales of £12.6 billion up to 31st March and profits worth £730 million.
FTSE 100 Movers
Heavy weight energy and consumer staple stocks are among the best performers in the index. Large dollar-earning consumer staples companies such as Diageo, Unilever, and Reckitt Benckiser Group, provided the biggest boost to the FTSE 100 index.
Anglo American and Rio Tinto shares were on the lead with more than 4% gains. BP Plc and Royal Dutch Shell Plc recorded an increase of more than 1.50% on higher crude prices. Other companies such as Bloomsbury Publishing increased by 5.5%. Rolls Royce Holdings Plc recorded a 3.08% gain.
Among the worst performers in the index include Kingfisher, Antofagasta Plc, B&M European Value Retail SA, among others.