Miners, AstraZeneca push FTSE 100 higher; Boohoo slumps (updated)

Mid Penn Bancorp

30/09/2021 09:58

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    * FTSE 100 tracks best quarterly win streak since March 2017
    * Boohoo drops after warning inflation troubles would hurt
margins
    * Benchmark 10-year yields cross 1% for first time since
2019
    * UK's Q2 GDP growth beats analyst expectations 
    * FTSE 100 up 0.5%, FTSE 250 adds 0.6%

 (Updates prices, adds comment)
    By Shashank Nayar and Bansari Mayur Kamdar
    Sept 30 (Reuters) - London's FTSE 100 rose on Thursday,
driven by mining heavyweights and drugmaker AstraZeneca, while
fashion retailer Boohoo slumped to a 14-month low after it
warned higher inflation would hurt margins. 
    The blue-chip FTSE 100 index  .FTSE  gained 0.5%, with
industrial miners  .FTNMX551020  adding the most among all
sectors as they tracked a jump in iron ore prices, driven by
hopes of a recovery in Chinese demand.  IRONORE/  
    AstraZeneca shares climbed 1.8% after its COVID-19 vaccine
showed 74% efficacy at preventing symptomatic disease in a U.S.
trial.  urn:newsml:reuters.com:*:nL1N2QV2V6
    Whiskey maker Diageo Plc  DGE.L  rose 2.3% after it forecast
a boost to operating margins on the back of higher spending on
premium brands and at restaurants and bars.  urn:newsml:reuters.com:*:nL4N2QW1PL   
    The FTSE 100 has gained 10.6% so far this year, helped by
optimism over economic recovery, robust corporate earnings and
dovish central bank policies.  
    However, a recent rise in inflation due to supply chain
constraints and higher oil prices have raised interest rate hike
bets, weighing on equity markets globally.
    Retailer Boohoo  BOOH.L  dropped 9.7% after it warned that
freight inflation in its supply chain and higher wages for
workers would impact full-year profit margins.  urn:newsml:reuters.com:*:nL8N2QW1AG
    "This is not Boohoo's best look. It is spending heavily on
increasing capacity and if sales don't grow to match it, it will
have serious implications for profits," said Sophie Lund-Yates,
an analyst at Hargreaves Lansdown.     
    "Initially, it felt like UK's economic recovery was going
well and that there was a huge amount of (monetary) control
built in, but it now feels like prices are getting out of hand,"
said Danni Hewson, an analyst at AJ Bell. 
    The benchmark 10-year yield  GB10YT=RR  rose above 1% for
the first time since May 2019, depicting rising inflation
pressures.
    The domestically focussed mid-cap index  .FTMC  advanced
0.6% after data showed the UK's gross domestic product grew more
strongly than previously thought in the second quarter.
 urn:newsml:reuters.com:*:nL8N2QV4H6     
    

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FTSE 100 tracks best quarter win streak    https://tmsnrt.rs/2XYIpjG
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 (Reporting by Bansari Mayur Kamdar; Editing by Saumyadeb
Chakrabarty and Ramakrishnan M.)
 ((BansariMayur.Kamdar@thomsonreuters.com;))
 
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