FTSE 100 watch: Footsie rallies as weaker dollar props up miners

on Jun 6, 2016

The UK benchmark index has kicked off the week in positive territory, propped up by miners which have been in demand in the wake of the disappointing US jobs report on Friday. easyJet (LON:EZJ) meanwhile is underperforming the FTSE 100 index after updating investors on its May traffic.

As of 12:09 BST, the Footsie had added 57.79 points to stand 0.93 percent higher at 6,267.42. Blue-chip miners are leading the index higher, after Friday’s shock miss in last month’s US jobs data sent the dollar lower and propped up commodity prices. Anglo American (LON:AAL) is leading the sector higher, with the shares nine percent better off at 673.50p.
“Mining stocks are topping the FTSE 100 this morning as the commodities space benefits from a weaker US dollar basket, back below the key 95 level for first time in a fortnight,” Mike van Dulken, head of research at Accendo Markets, said, as quoted by the Guardian. “The currency’s reversal of recent strength comes in response to Friday’s surprisingly weak May US jobs report that must be considered a setback for Janet Yellen and [the Federal Reserve] in terms of ability to tighten US monetary policy further this summer.”

Housebuilders meanwhile have been sold off on the back of Brexit concerns after polls pointed to a lead for the ‘out’ campaign. Berkeley Group (LON:BKG) has posted the most notable losses in the sector, having shed 1.67 percent to 3,185.00p so far today.
“We’re in the final stages of the Brexit debate now, and anything with a strong UK exposure is starting to come under a bit of pressure from traders that are looking at stocks […] that will see significant downside if there is a vote to leave the EU,” Jonathan Roy, advisory investment manager at Charles Hanover Investments, told Reuters.
In individual movers, easyJet’s share price has lost 1.31 percent to 1,504.00p after the company disclosed that 173 flights had been cancelled last month on account of a French air traffic control strike and poor weather conditions.
**The FTSE 100 was 0.95 percent up at 6,268.91 points as of 12:17 BST on Monday, June 6, 2016.**

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