FTSE 100 watch: Footsie steady after upbeat China data

Written by: Tsveta van Son
March 11, 2020

The FTSE 100 index has climbed marginally higher in London this Tuesday, benefitting from upbeat data out of China. In individual blue-chip movers, shares in BP (LON:BP) are underperforming the broader market following a downgrade at RBC Capital.

Index climbs higher

As of 12:32 BST, Britain’s blue-chip index had added 32.77 points to stand 0.44 percent higher at 7,469.64. Sentiment has been upbeat today following the home prices numbers out of China, which have fuelled support for miners and financials.

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“Hopes towards what the Chinese GDP numbers might say tomorrow (Wednesday) combined with a more positive interpretation from the IMF’s Spring meeting over the weekend have helped perceptions towards growth-sensitive sectors like miners and banks,” said Raymond James analyst Chris Bailey, as quoted by Reuters.

Chris Beauchamp, market analyst at IG, commented in a note today that rising support from the April 11 low had helped prevent further downside in the FTSE 100, and that a close above the 7,460-point level would ignite a move to 7,560 points.

“A close below 7435 might suggest another test of 7380 is in the offing, with a close below this providing a more bearish view,” the analyst pointed out.

FTSE 100 movers

In individual blue-chip risers and fallers, BP is marginally underperforming the broader market, as RBC Capital removed the company from its ‘top picks’ list, arguing that they now saw less valuation upside. The oil major’s shares are currently changing hands 0.37 percent lower at 567.80p.

Rio Tinto (LON:RIO) has been little changed despite disclosing in its first-quarter operations review that its iron ore business had faced several challenges, particularly from tropical cyclones. The miner’s shares are 0.09 percent better off at 4,706.50p.

The FTSE 100 was 0.51 percent up at 7,474.43 points as of 13:01 BST on Tuesday, 16 April 2019.