Economic news

FTSE 100 Rises on Healthcare, Beverages Ahead of US Jobs

  • FTSE 100 up ​0.5%, FTSE 250 down 0.2%
  • Investors await U.S. payrolls data for ‌Fed clues
  • Currys falls after warning of memory-chip shortage

July 2 (Reuters) - London's FTSE 100 climbs, supported by defensive healthcare and beverage stocks, as investors awaited U.S. payrolls data for ​clues on the Federal Reserve's policy path.

The blue-chip FTSE 100 ​index rose 0.5% to 10,532.93 points by 1153 GMT, ⁠while the midcap FTSE 250 slipped 0.2%.

  • The healthcare sub-index rose 1.4%, ​boosted by AstraZeneca, which gained 1.4% after striking a deal worth up to $1.77 ​billion with China's CSPC Pharmaceutical Group to develop kidney disease treatments.

  • Consumer-focused stocks including Tesco, Coca-Cola HBC , and J Sainsbury rose between 2.6% to 1.8% each.

  • The U.S. non-farm ​payrolls report is due at 8:30 a.m. ET, with investors watching ​for signals on the health of the labor market and monetary policy path.

  • Economists expected ‌the ⁠Labor Department's closely watched employment report to keep a September interest rate hike from the Federal Reserve on the table amid rising inflation from the U.S.-led war with Iran.

  • On the geopolitical front, Iran and the ​U.S. concluded a ​round of indirect ⁠talks in Doha on Wednesday without any clear breakthrough toward a lasting peace agreement, still oil prices ​slid as supply concerns around Strait of Hormuz eased.

  • Among ​individual UK ⁠stocks, British electricals retailer Currys fell 3.7% after it warned that a global memory-chip shortage could drive up prices for smartphones, laptops and other ⁠electronics later ​this year.

  • Shares of Genel Energy rose ​4.6% after the Kurdistan-focused oil and gas producer agreed to acquire Britain's Capricorn Energy in a $360 ​million all-cash deal.

Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Tasim Zahid

Source: Reuters


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