Miners dug in among the FTSE 100 gainers as metal prices rebounded yesterday.
They were lifted by a weaker dollar after Donald Trump called for lower interest rates and indicated that US trade tariffs were likely to be imposed at a slower pace.
A combination of anticipated US tariffs, and the consequent prospects of a stronger dollar had weighed on commodity prices.
But with the president also voicing optimism about relations with China – the world’s biggest consumer of metals – copper, aluminium, lead, zinc, and tin all rallied.
Chilean copper miner Antofagasta stood out, up 1.4 per cent, or 24.5p, to 1754.5p as analysts at HSBC hiked their price target to 1400p from 1300p, although they maintained a ‘reduce’ rating.
Glencore (up 0.5 per cent, or 1.9p, to 375.4p) and Rio Tinto (ahead 0.8 per cent, or 39.5p, to 4987p) also rode the metals recovery. Anglo American, however, edged down 0.5 per cent, or 12.5p, to 2535.5p after analysts at Citi downgraded its rating to ‘neutral’ from ‘buy’ and cut their price target to 2800p.
Digging in: Miners were lifted by a weaker dollar after Donald Trump called for lower interest rates and indicated that US trade tariffs were likely to be imposed at a slower pace
The FTSE 100 was broadly unchanged in President Trump’s first week in office having closed down 0.7 per cent, or 62.85 points, at 8502.35 yesterday. The FTSE 250 also lost ground on the final session, down 0.01 per cent, or 2.34 points, to 20,518.05.
Drinks giant Diageo topped the blue-chip index, jumping 4.3 per cent, or 102p, to 2503.5p, amid reports that chief executive Debra Crew could press the button on a possible spin-off or sale of Guinness.
Diageo will report its first-half results on February 4 and talk of other major strategic changes have also been circulating.
On the downside, energy majors declined, with Shell off 2.4 per cent, or 63p, to 2620p, and BP down 0.9 per cent, or 3.9p, to 419.85p after crude prices weakened on Trump’s plans to boost US production and his demand that oil cartel Opec lower prices.
On the second line, oil and gas producer Harbour Energy lost 7.7 per cent, or 21.3p, to 254.1p, also hit as analysts at Goldman Sachs cut their price target to 245p and repeated a ‘sell’ rating.
Among the corporate news, Severn Trent shed 1.9 per cent, or 47p, to 2437p as the FTSE 100-listed water firm said its dividend payments would increase in line with inflation under regulator Ofwat’s new pricing rules.
The company also said that it remains on track to meet guidance in the current year.
On the FTSE 250, Paragon Banking inched down 0.1 per cent, or 1p, to 761.5p despite reiterating its full-year guidance after an encouraging start to 2025, particularly in buy-to-let lending.
Among the small caps, currency and asset manager Record jumped 7.8 per cent, or 3.7p, to 51.2p after revealing that revenue for the year is expected to slightly exceed previous forecasts, driven by heightened currency volatility.
TheWorks.co.uk rose 4.7 per cent, or 0.9p, to 20.55p as the AIM-listed High Street books and hobbies chain unveiled a strategy to combat a sales slump at its underperforming online arm after reporting a reduction in first-half losses.
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