London shares eye weekly gains as miners spark rally (updated)
12/04/2024 09:47
(For a Reuters live blog on U.S., UK and European stock
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FTSE 100 up 1%, FTSE 250 adds 0.9%
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UK GDP grows 0.1% in Feb
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BP rises after ADNOC's takeover interest
(Updated at 0811 GMT)
By Pranav Kashyap and Khushi Singh
April 12 (Reuters) -
British equities rose on Friday and were set for weekly
gains, led by metal miners, while data showed that the economy
grew for a second straight month in February, on course to exit
a shallow recession.
The exporter-heavy FTSE 100 .FTSE was up 1% as of 0811
GMT, and the mid-cap FTSE 250 index .FTMC rose nearly 0.9%.
Both indexes are on track to notch weekly gains.
Industrial metal miners .FTNMX551020 advanced 3%, tracking
higher metal prices in Shanghai as funds pumped money into
commodities, including metals to hedge against rising inflation.
MET/L
Precious metal miners .FTNMX551030 led sectoral gains with
a 3.3% rise, with gold prices hitting a historic peak. GOL/
The index is also set to become the top performing sector
for the week, adding 4.7%.
Britain's GDP grew 0.1% in February, in line with a Reuters
poll of economists. January's reading was revised higher,
pointing to an exit from recession in early 2024.
UK GDP data will allow the Bank of England (BoE) to feel
comfortable about cutting rates in the second half of 2024 as
it's looking for an economy that's strong enough to see growth
holding up but not too strong to see inflation reaccelerate,
said Hugh Gimber, global market strategist at J.P. Morgan Asset
Management.
Currently, traders expect the BoE to ease rates in
August.
Meanwhile, the U.S. earnings season will kick off later in
the day with Citi, Wells Fargo, JPMorgan Chase and BlackRock due
to report first-quarter results.
Among individual stocks, BP BP.L gained 2.3% after United
Arab Emirates' state-owned oil company Abu Dhabi National Oil
Company (ADNOC) recently considered buying the energy giant,
according to sources, but deliberations did not progress beyond
preliminary discussions.
R&Q Insurance's RQIH.L shares hit a record low, losing
45.4% after the Bermuda-based non-life global specialty
insurance firm said it anticipates significant annual pre-tax
loss due to higher costs on the sale of a business unit.
(Reporting by Pranav Kashyap, Khushi Singh in Bengaluru;
Editing by Sohini Goswami and Sonia Cheema)
((Pranav.Kashyap@thomsonreuters.com;))
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