FTSE 100 Hits Six-Week High Driven by Mining Gains
London's FTSE 100 soared over 2% led by mining giants Anglo-American, Rio Tinto, and Glencore, each gaining over 5% as commodity prices surged, notably iron ore and oil. The index closed at 7,673.08, marking its highest since July 31, with a 1.95% increase.
Chris Beauchamp, chief market analyst at IG, noted the rally was spurred by surging commodity prices, particularly in oil and natural gas, benefiting companies like Shell, BP, Rio Tinto, and Glencore. Asia-focused banks like HSBC and Standard Chartered also contributed to the FTSE 100's best day since mid-July, fueled by optimism around Asian economic growth prospects.
In other market moves, the European Central Bank raised interest rates to their highest level since the euro's inception in 1999. However, they signaled this could be the final hike in the current cycle.
Across Europe, the Dax in Germany closed 0.97% higher, and France's Cac 40 was up 1.19%. The pound saw a 0.6% drop against the US dollar, landing at 1.241, but a slight 0.1% increase against the euro, reaching 1.1642.
In company news, Trainline's shares surged after reporting robust first-half sales performance, announcing plans for a share buyback of up to £50 million over the next year. THG, however, saw a sharp decline of over 20% in shares due to increased losses in the first half of the year, despite CEO Matthew Moulding emphasizing strong earnings before business costs.
