LONDON MARKETS: Miners, Oil Shares Lead The FTSE 100 Higher
22 May 2017 - 6:28PM
Dow Jones News
By Carla Mozee, MarketWatch
Pullback in pound to below $1.30 also helps index rise
U.K. blue-chip shares gained Monday, with energy shares
advancing on the back of a rise in oil prices ahead of this week's
OPEC meeting to discussion production targets.
The FTSE 100 index picked up 0.3% at 7,495.50, topped by the
basic materials group.
"Solid growth in [the FTSE's] commodity stocks -- themselves
aided by Brent crude's push towards $54 per barrel -- provided the
main thrust of the U.K. index's rise, complimented by an early fall
from the pound," said Spreadex financial analyst Connor Campbell in
an early Monday note.
The FTSE 100 on Friday rose 0.5%
(http://www.marketwatch.com/story/uk-stocks-break-2-day-losing-streak-after-pounds-mini-flash-crash-2017-05-19).
That move lifted the index up 0.5% for the week, a fourth
consecutive weekly advance.
Energy boost: Shares of oil producers BP PLC (BP.LN) (BP.LN) and
Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) each rose 0.3% as oil
prices advanced. Brent , the global benchmark, and West Texas
Intermediate crude futures were each gaining nearly 1%.
Crude oil prices were trading at their highest in more than a
month on Monday, helped by hopes of a revamped output deal at
Thursday's Organization of the Petroleum Exporting Countries
meeting in Vienna. Analysts widely expect the group to agree to
extend oil-production cuts of 1.8 million barrels for another six
months at least.
Read:4 potential outcomes for OPEC's crucial meeting
(http://www.marketwatch.com/story/4-potential-outcomes-for-opecs-crucial-meeting-2017-05-19)
Miners aloft: Mining shares were also rising, with Anglo
American PLC (AAL.LN) up 1.6%. Fresnillo PLC (FRES.LN) and Randgold
Resources PLC (RRS.LN) each moved higher by 1.4%.
The pound bought $1.2979 compared with $1.3037 late Friday in
New York. Investors began the week with news that the Conservative
Party's lead over the Labour Party has narrowed in polls in the
runup to the June 8 general election, with the gap now in single
digits.
A weaker sterling can help bolster foreign-denominated earnings
made by multinational companies on the FTSE 100.
The London benchmark had faced a loss as the pound last week
pushed above $1.30 for the first time since September and as
equities sold off on concerns that controversies surrounding the
White House would derail U.S. President Donald's pro-growth
agenda.
Read:Here's how impeachment works -- and why Trump is safe for
now
(http://www.marketwatch.com/story/heres-how-impeachment-works---and-why-trump-is-safe-for-now-2017-05-17)
(END) Dow Jones Newswires
May 22, 2017 04:13 ET (08:13 GMT)
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