FTSE 100 flat as losses in miners, energy stocks offset gains in banks

© Reuters. FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London, Britain. Aug 23, 2018. REUTERS/Peter Nicholls

By Devik Jain

(Reuters) -British shares climbed on Friday, led by gains in financials and homebuilders on economic recovery optimism, while investors awaited key U.S. inflation data which has kept them on edge this week.

The blue-chip rose 0.4% with banks and life insurers adding 1.5% and 1.9%, respectively. HSBC Holdings (LON:) and Prudential (LON:) provided the biggest boost.

Homebuilders jumped with Vistry Group and Taylor Wimpey (LON:) gaining 2.5% and 3.5%, respectively.

Britain’s financial regulator said it would move to protect consumers from so-called “loyalty penalties” in motor and home insurance, potentially saving an estimated 4.2 billion pounds ($5.95 billion) over 10 years.

The domestically focused mid-cap inched 0.4% higher and was set to outperform the blue-chip index for the second straight week with a 1.6% gain.

“What we’ve seen in sort of anecdotal conversations, backed up by investor surveys, is the global asset allocators’ view of the UK is turning a bit more positive,” said Ian Williams (NYSE:), Peel Hunt’s economics & strategy research analyst.

“If you want to buy UK exposure, then you tend to go more into mid- and small-caps and a combination of a bit of takeover activity and decent earnings recently has been more helpful for them.”

The FTSE 250 is only down 0.6% from a record high hit on May 10, as the British economy has reopened and data pointed to a stronger economic recovery in the second half of the year due to vaccine rollouts and constant policy support.

See also  Are banks open during second lockdown? Barclays, HSBC and NatWest opening hours and advice

Asian shares rallied too as investors bet the United States will lead the world out of the pandemic, with the focus turning to a multi-trillion dollar spending boost by the Biden administration. [MKTS/GLOB]

Among stocks, brewer C&C Group slipped 3.5% to the bottom of the FTSE 250 index after Berenberg cut its price target on the stock.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more