LONDON, Feb 9 ― London's FTSE 100 snapped a three-day losing streak yesterday as mining and energy stocks tracked strong gains in commodity prices, while Arrow Global surged after private equity firm TDR Capital raised its buyout offer for the asset manager.
The commodity-heavy FTSE 100 was up 0.5 per cent, boosted by the likes of miners Anglo American, Rio Tinto and BHP Group and oil producers BP and Royal Dutch Shell.
Financial firms were also among the biggest gainers throughout the day.
“The progress we are seeing regarding to Covid cases and fatality is very positive here in the UK,” said Craig Erlam, senior market analyst at OANDA Europe.
“There seems to be a very good progress being made on the US stimulus package as well and that's giving the market a boost.”
The FTSE 100 has recovered nearly 33 per cent from its March 2020 lows, led by a raft of stimulus, but a surge in infections and widespread lockdowns recently have slowed economic growth. The index has also lagged its US and European peers, which are up 77 per cent and 52 per cent, respectively.
All eyes this week will be on British GDP and manufacturing data for clues about the pace of the economic rebound.
Global stock markets reached record high on hopes that a US$1.9 trillion (RM7.7 trillion) US Covid-19 aid package will be passed as soon as this month.
Shares of British retailers were subdued as some of the biggest retailers, including supermarket chain Tesco and bookstore Waterstones have urged the government to permanently cut business rates if it wants physical stores to survive in the age of mass online shopping.
The mid-cap FTSE 250 index fell 0.1 per cent, led lower by technology-related firms.
Arrow Global Group surged 23.4 per cent after TDR Capital made a fourth offer for the European investor and asset manager at a price of 305 pence per share.
Online fashion retailer Boohoo fell 4.8 per cent after it bought Dorothy Perkins, Wallis and Burton brands from the administrators of Arcadia for £25.2 million, completing the break-up of Philip Green's empire. ― Reuters
