Aug 21 2024: London’s FTSE 100 edged higher on Wednesday, supported by gains in the mining sector, while global markets remained cautious ahead of upcoming U.S. economic data, the release of the Federal Reserve’s July meeting minutes, and speeches from policymakers later in the week.
As of 0711 GMT, the blue-chip FTSE 100 index rose by 0.1% to 8,277.36, recovering slightly after experiencing its worst day since August 5 in the previous session. The mid-cap FTSE 250 index also gained 0.2%.
Industrial metal miners led the gains in the benchmark index, rising by 1.6% despite a slight drop in copper prices. Precious metal miners climbed 1.2% as gold prices remained just below record-high levels, buoyed by Western fund inflows and optimism over potential U.S. rate cuts.
The FTSE 100 had closed 1% lower the previous day, with significant losses in heavyweight energy shares. The energy sector continued to lead losses on Wednesday, falling by 0.4% as oil prices slipped due to rising U.S. crude inventory estimates and expectations of easing tensions in the Middle East.
Global markets paused their recovery from the past week, which followed reassuring U.S. data and a steep sell-off earlier in the month.
Investors are particularly focused on Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium in Wyoming. Powell is expected to address the possibility of a rate cut in September, following recent dovish comments from some Federal Reserve officials.
Later in the day, the U.S. is set to release preliminary revisions to labor data, and the Federal Reserve minutes are anticipated to reinforce a dovish outlook.
In individual stock movements, Mobico shares surged by 6.2% after the British transport company reported a more than 28% increase in its first-half profit. Meanwhile, Watkin Jones shares plummeted by 30% after the company missed profit estimates for the year and announced it was reviewing funding options. This was followed by a downgrade from “buy” to “hold” by brokerage Peel Hunt.
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