British equities rose on Monday as mining firms surged on higher metal prices and other Chinese-exposed companies firmed in anticipation of greater policy assistance from Beijing. Still, AstraZeneca fell after reporting a trial adverse event.
The domestic-focused FTSE 250 midcap index (.FTMC) jumped 0.4%, while the blue-chip FTSE 100 (.FTSE) advanced 0.2%.
Industrial metal miners (.FTNMX551020) climbed 2.3% as base metal prices surged and confidence improved.
After a diamond sales deal with Botswana, Anglo-American (AAL.L) rose 3% and led the FTSE 100.
AstraZeneca (AZN.L) fell 4.5% after reporting adverse events in a late-stage lung cancer treatment trial.
China-exposed HSBC (HSBA.L) and Standard Chartered (STAN.L) climbed 0.7% and 1.2%, respectively.
China’s central bank said on Friday it would pursue cautious monetary policy in a “precise and forceful manner” to promote economic growth and jobs, as a private sector poll indicated manufacturing activity growth slowed in June.
Energy heavyweights (.FTNMX601010) gained 1.2%.
Despite reaching record highs earlier this year, the UK’s FTSE 100 fell in April-June due to unpredictable commodity prices and high inflation, which prompted more monetary policy tightening.
“Everyone is waiting to see where interest rates are going… the UK has surprised more than others (on inflation), so there is reason to believe that this next quarter could still be a bit volatile,” said Georgina Cooper, UK stock portfolio manager at Newton Investment Management.
A weaker pound boosted the exporter-heavy FTSE 100. Despite falling price pressures, Britain’s industrial sector fell faster in June.
