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Miners Drive FTSE 100 Up, Set to End Turbulent Week Higher

  • Queen Elizabeth dies at 96, ending an era for Britain
  • Miners jump 5% set to snap three-week losing streak
  • Royal Mail says not in talks with PE firm over potential sale
  • FTSE 100 up 1.3%, FTSE 250 adds 1.0%

Sept 9 (Reuters) - UK's commodity-heavy FTSE 100 index rose on Friday, led by a jump in mining stocks, and was set to end the week higher after a few volatile sessions amid the announcement of the country's new Prime Minister and the death of its longest-reigning monarch.

The FTSE 100 index rose 1.3% at 0814 GMT, and was headed for its second consecutive weekly gain.

Miners advanced 5.0% as copper prices rose on a weaker dollar and lower-than-expected inflation in top consumer China.

The mining sector has been the best performer on the FTSE 100 so far this week and was on track to snap a three-week slump.

Oil majors BP and Shell gained 1.5% each as crude prices firmed on fears of supply tightness.

Queen Elizabeth, Britain's monarch, the nation's figurehead and a towering presence on the world stage for seven decades, died peacefully at her home in Scotland on Thursday.

"The only implications could be that they may be closing the London Stock market for a few days," said Patrick Armstrong, chief investment officer at Plurimi Wealth.

"If there are days where the market is closed, that may lead to some weakness where people don't want to hold positions into an extended period, especially given the volatility with the Federal Reserve coming up with their next hike in a couple of weeks."

The sterling rose 1.2% against a weaker dollar, repairing a modest dip made after the death of Queen Elizabeth.

Markets awaited the rate decision by the Bank of England next week after the European Central Bank delivered an unprecedented 75-basis-point interest rate hike on Thursday. 

Rate-sensitive banks rose 1.1%, extending gains on the prospect of higher interest rates in Europe and the United States.

Investors also assessed Britain's new leader Liz Truss's plan on Thursday to cap soaring consumer energy bills for two years with measures likely to cost the country upwards of 100 billion pounds ($115 billion).

The domestically focussed mid-cap index gained 1.0% and was set to end the week 1.2% higher.

Royal Mail rose 2.7%, after saying it was not involved in talks with a private-equity firm over a potential sale of the postal group.Computacenter plc dropped 9.1% after half-year results missed profit and revenue estimates.

Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Rashmi Aich and Krishna Chandra Eluri

Source: Reuters

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