Retailers and miners FTSE 100 bounce back after recent losses
The FTSE 100 index has seen significant gains on Monday, bolstered by strong performances from retailers, miners and oil companies. The blue chip index has gained more than one percent since the start of the session, solidifying its position above the 7,100-point level. The FTSE 100 rose to as high as 7,214.23 points earlier in the session, but is currently hovering just below the 7,200 mark.
The retail sector has been a major contributor to the index’s gains. Ocado Plc (LON:OCDO) has been the best performing company in that sector, thanks to a positive report from JP Morgan which, according to Reuters, argued that the online grocery chain operates “a superior economic model” than its store-based rivals. Currently trading at 1,201.00 GBX, Ocado has gained 4.3% since the start of today’s session.
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Meanwhile, retail rival J Sainsbury Plc (LON:SBRY) has seen its shares rise 3.3% so far today.
Mining companies have also been on the rise today, with Glencore Plc (LON:GLEN), Anglo American Plc (LON:AAL), BHP Group Plc (LON:BHP) and others enjoying solid gains throughout the day. The sector has been boosted by news that China’s central bank is making reforms aimed at lowering borrowing costs for companies and supporting the local economy, which has been hindered by the trade war with the US.
Today’s strong session has allowed the FTSE 100 to recover most of its last week losses, but the index is still on track for its worst monthly decline in four years, according to Reuters. On Thursday, the index hit a near six-and-a-half-month low of 7,067.01 amid a global equity sell-off spurred by fears of recession after the yields on 10-year US and UK government bonds fell below two-year equivalents for the first time since the financial crisis.
In today’s trading, the FTSE 100 stood at 7,194 points, as of 15:28 BST. The index has gained 1.1% since the start of the session.
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