FTSE 100 watch: Miners help push Footsie higher

on Nov 21, 2016

The UK benchmark index has kicked off the week on an upbeat note, benefitting from a recovery in metals prices, which have fuelled demand for London-listed miners. A surge in the oil price meanwhile is propping up energy stocks, with investors hoping for an OPEC deal on output.

As of 12:15 GMT, the Footsie had added 25.66 points to stand 0.38 percent higher at 6,801.43. Anglo American (LON:AAL) is leading other London-listed miners higher, helped by a rally in metals prices amid expectations for an increase in demand, and a pullback in the US dollar. Anglo American’s share price is currently 3.31 percent better off at 1,125.55p. Renewed optimism about an OPEC deal to curb output meanwhile is fuelling demand for shares in Royal Dutch Shell (LON:RDSA) and BP (LON:BP). Shares in Shell have gained 1.74 percent to 2,019.50p, while BP’s share price is 2.11 percent up at 457.10p.

“The FTSE 100 has been struggling to rally for a week now, with each bounce getting smaller and smaller,” IG analyst Chris Beauchamp told Reuters. “Bond yields are a touch weaker, but the increased attractiveness of fixed income means that the dividend stalwarts on the FTSE keep getting hit.”
Connor Campbell meanwhile commented in an afternoon note that sterling’s weakness “alongside a Brent Crude-led rebound for its oil and mining stocks has caused the index to climb half a percent, putting it back above that blasted 6,800 resistance level”.
At the other end of the spectrum have been London-listed retailers, with J Sainsbury’s (LON:SBRY) leading the sector lower, having shed 2.06 percent to stand at 233.99p.
**The FTSE 100 index was 0.35 percent up at 6,799.43 points as of 12:26 GMT on Monday, November 21, 2016.**

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