British midcaps hit record high on industrials, factory data boost

Stocks stall, oil cools, Evergrande and lira fall
Stocks stall, oil cools, Evergrande and lira fall Copyright Thomson Reuters 2021
By Reuters
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By Shivani Kumaresan and Devik Jain

-The British mid-cap stock index rose to a record high on Tuesday, helped by gains in industrials and consumer discretionary stocks, while an upbeat reading on factory activity infused confidence on the economic recovery.

The domestically focused mid-cap FTSE 250 index advanced 0.8% as a deluge of new orders helped drive a record increase in British manufacturing activity last month as the economy began to recover from the COVID-19 pandemic.

The blue-chip index climbed 0.8%, with base metal miners gaining 3.7% as they tracked higher copper and iron ore prices. [O/R]

Oil majors BP and Royal Dutch Shell added more than 1.2% each after Brent crude topped $70-mark on favourable demand outlook. [O/R]

"UK markets has been the big beneficiary of inflation trade since it is a heavily weighted market with the commodity sector. At the same time, it’s underperforming when compared to the rest of Europe," said Keith Temperton, a sales trader at Forte Securities.

"With talks going around about a delay in reopening, developments related to COVID-19 will be keenly watched by the markets."

Mortgage lender Nationwide said British house prices jumped by an annual 10.9%, the most in nearly seven years, apparently set to accelerate further as people seek new homes after the pandemic.

The wider homebuilders index rose 2.1%.

The FTSE 100 index has traded in a tight range since April as concerns grew that central banks might pare support early as economies reopen and inflation climbs.

Among other stocks, Wickes Group added 4.7% after the do-it-yourself retailer said its full-year profit would be in the upper half of analyst expectations after sales surged in April.[nL5N2NJ155]

M&C Saatchi jumped 12.1% after the advertising agency forecast upbeat annual results on new robust campaigns. [nL3N2NJ1NS]

Travel food group SSP Group rose 3.0% after Peel Hunt upgraded the stock to "add" on potential growth from European air market opening. [nL3N2NJ1NQ]

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