Economic news

UK Stocks Recover as Bond Rally Lifts Risk Sentiment

  • FTSE 100, FTSE 250 each ​up 0.1%
  • Airtel Africa and Vodafone climb 3.3% to ‌3.8%, leading sectoral gains
  • Hilton Food jumps 16.7% after raising annual profit forecast
  • Services sector grows for the second month in August

Sept 3 (Reuters) - The UK's ​main stock indexes recovered on Thursday as a ​rally in global bonds ahead of a U.S. jobs ⁠report lifted risk sentiment, while firmer commodity prices provided ​additional support.

The blue-chip FTSE 100 index rose 0.1% to 10,767.57 ​points by 10:10 GMT, while the midcap FTSE 250 gained 0.1%, rebounding from a nearly one-month low.

  • Britain's 10-year gilt yields eased more ​than 5.8 basis points from an 18-year high of Wednesday, ​tracking a rally in global bonds and stocks ahead of U.S. non-farm payrolls data ‌on ⁠Friday.

  • The services sector in the UK grew for the second month in a row in August and confidence rose, a survey showed.

  • Rate-sensitive banks rose 0.2%.

  • Healthcare stocks advanced 0.9% higher, supported by ​weaker sterling, with ​AstraZeneca up ⁠1.3%.

  • Precious metal miners gained 0.9% as gold and silver prices rose. GOL

  • Telecom stocks Airtel Africa and ​Vodafone rose between 3.3% and 3.8%, leading sectoral ​gains.

  • Luxury ⁠retailer Burberry slipped 1.9%, as weak demand prospects weighed on the sector across Europe, sending the broader personal goods sector down ⁠2.2%, ​leading sectoral losses.

  • Hilton Food Group jumped ​16.7%, among the top gainers in the mid-cap index after raising annual profit ​forecast.

Reporting by Anand Gopal in Bengaluru; Editing by Ronojoy Mazumdar

Source: Reuters


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