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Oil price rally and positive Chinese manufacturing data boost FTSE 100

03 July 2017 17:04

Positive manufacturing data from Caixin's Purchasing Managers' Index helped drive up shares in mining companies.

Glencore (GLEN) and Antofagasta (ANTO) led the way with gains of 5% to 301.6p and 3% to 824p respectively.

Also in the commodities space, higher oil prices benefited shares in oil producers.

Brent crude oil increased 1.3% to $49.40 per barrel.

Royal Dutch Shell (RDSB) increased by 1.8% to £21 and BP (BP.) moved 1.9% higher to 451.3p.

Gains in oil, gas and mining stocks were contributors to the rally in the FTSE 100, up 0.9% to 7,377.

Also supporting the blue chip index were upwards movements in utility stocks.

The UK's energy regulator Ofgem announced it could cap bills for some of the most vulnerable consumers and make switching supplier easier.

The regulator did not suggest enforcing widespread price caps that were set out in the Conservative manifesto earlier this year.

Investors were relieved with energy providers Centrica (CNA) and SSE (SSE) up 1.7% and 0.3% higher to 203.7p and £14.65, respectively.

On the economic front, UK manufacturing growth slowed at the end of the second quarter of 2017, according to Markit's latest data. The Purchasing Managers' Index was at a three-month low of 54.3 in June. Any reading over 50 signifies growth.

OVERSEAS MARKETS

Wall Street was mainly higher on Monday, ahead of Independence Day on Tuesday when the stock markets will be closed for the day.

The S&P 500 was 0.5% higher at 2,436 but the tech heavy Nasdaq was 0.2% lower at 6,116.

FTSE 100 RISERS AND FALLERS

Blue-chip lender Provident Financial (PFG) was down 2.7% to £23.68 after investment bank Liberum said another profit warning for the home credit division was likely and maintained 'sell'.

Testing group Intertek (ITRK) nudged 0.6% to £41.93 following a downgrade to 'hold' from investment bank Berenberg.

In corporate UK news, water utility firm Severn Trent (SVT) confirmed the sales of its North American business for $62m. Its shares traded 0.4% lower at £21.74.

Broadband provider Sky (SKY) invested $2m in early-stage tech firm Circle Media Labs in a bid to provide additional insight for connected devices. The stock remained flat at 998p on the news.

FTSE 250 RISERS AND FALLERS

In the world of retail, SuperGroup (SGP) defied a gloomy industry outlook after reporting an 18.4% rise in underlying pre-tax to £87m for the year to 29 April 2017. Shares in the company rose 2.7% to £15.36.

Electrocomponents (ECM) sparked 3.8% to 599p on strong trading in its first quarter, thanks to acceleration in revenue growth and improved profit.

SMALL CAP RISERS AND FALLERS

Shares in Plus500 (PLUS) hit a year to date high of 568p as management expected revenue and profit for the year to 31 December 2017 would beat expectations. The company suffered share price weakness last year following a regulatory clampdown on the contracts for difference industry.

A quarter of Sound Energy's (SOU) value was wiped off after it revealed that a gas discovery at its Italian exploration well was 'sub-commercial'.

Frontier IP (FIPP) said portfolio company Exscientia confirmed on Sunday that it had entered a strategic drug discovery collaboration with pharma firm GlaxoSmithKline (GSK). Shares in Frontier IP jumped 6.6% to 40.5p.

Story provided by StockMarketWire.com

Related Company: PFG

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