LONDON MARKETS: FTSE 100 Advances As Oil, Mining Shares Rise
15 March 2017 - 8:29PM
Dow Jones News
By Carla Mozee, MarketWatch
U.K. stocks pushed modestly higher on Wednesday, aided by gains
for commodity shares, while investors waited for an update on
conditions in the British labor market.
The FTSE 100 rose 0.3% to 7,377.12, led by gains for mining, oil
and gas and industrial shares. The index on Tuesday shed 0.1%
(http://www.marketwatch.com/story/ftse-100-on-the-rise-as-pound-drops-to-lowest-since-january-2017-03-14),
marking the first fall in three sessions.
The moves come ahead of U.K. data on wages and the unemployment
rate in January, due at 9:30 a.m. London time, or 5:30 a.m. Eastern
Time.
Read: Ginflation? Brits drink so much gin it's now used to
calculate inflation
(http://www.marketwatch.com/story/ginflation-brits-drink-so-much-gin-its-now-used-to-calculate-inflation-2017-03-14)
Resource stocks: Miners got a lift as the dollar edged back,
aiding a rise in dollar-denominated metals prices including copper
and platinum . Near the top of the FTSE 100, shares of Rio Tinto
PLC (RIO) (RIO) (RIO) gained 2.4%, Glencore PLC (GLEN.LN) (GLEN.LN)
moved up 2.3% and BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU)
tacked on 1.9%.
The dollar shifted slightly lower ahead of the closely watched
Federal Reserve policy decision, due at 6 p.m. London time, or 2
p.m. Eastern Time. Investors have priced in expectations of a rate
hike, but will watch to see what Fed Chairwoman Janet Yellen will
say about rates moving forward and her assessment of U.S. and
global growth conditions.
Meanwhile, oil shares moved higher after being knocked lower on
Tuesday during a selloff in oil prices. Shares of oil producer BP
PLC (BP.LN) (BP.LN) rose 1% and rival Royal Dutch Shell PLC
(RDSB.LN)(RDSB.LN) picked up 0.9%.
Oil prices pushed higher Wednesday after industry group American
Petroleum Institute late Tuesday reported a decline in U.S. crude
supplies
(http://www.marketwatch.com/story/api-data-show-an-unexpected-decline-in-us-crude-supplies-sources-2017-03-14).
Oil prices stumbled Tuesday after a monthly OPEC report showed an
increase in U.S. and Saudi Arabian crude output
(http://www.marketwatch.com/story/oil-prices-rise-for-the-first-time-in-7-sessions-monthly-opec-report-ahead-2017-03-14)
in an already oversupplied global market
The oil and gas and basic materials groups make up more than 20%
of the FTSE 100's weighting, according to FactSet data.
In other moves, Hikma Pharmaceuticals PLC (HIK.LN) jumped 6%
after the company raised its dividend
(http://www.marketwatch.com/story/hikma-pharma-profit-drops-39-dividend-raised-2017-03-15).
Profit in 2016 fell 39% after booking exceptional costs.
Blue-chip stocks moved higher even as the pound advanced to
$1.2227 from $1.2154 late Tuesday in New York. A YouGov survey of
showed 57% of respondents favored Scotland staying in the U.K.
compared with 43% who back independence, according to The Times
newspaper.
(http://www.thetimes.co.uk/article/scots-want-to-remain-in-uk-new-poll-reveals-57256ptzs)
Scotland's First Minister Nicola Sturgeon said she'll ask the
Scottish parliament next week
(http://www.marketwatch.com/story/scottish-first-minister-nicola-sturgeon-confirms-plans-for-independence-vote-2017-03-13)
for approval to hold a second referendum asking if Scotland should
break away from the U.K.
Read:What's going on in Scotland, and what that means for the
pound
(http://www.marketwatch.com/story/pound-pushed-lower-as-scottish-referendum-worries-emerge-2017-02-27)
Also:Opinion: Get ready for sterling's wild ride as the U.K.
bolts the EU
(http://www.marketwatch.com/story/get-ready-for-sterlings-wild-ride-as-the-uk-bolts-the-eu-2017-03-15)
(END) Dow Jones Newswires
March 15, 2017 05:14 ET (09:14 GMT)
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