Led By Gains of Miners and A Weak Sterling, U.K. Shares Snap A Three-session Losing Streak
U.K. stocks gapped up on Tuesday, on track to halt a three-session losing streak. Shares of miners led the market as copper hit its highest level since November 2014 while a weak British Pound also contributed to provide some upside.
The stock benchmark index FTSE 100 jumped 0.7% to trade at 7,366.50. All sectors traded higher, led by gains in basic materials group. Copper prices continued to climb on Tuesday amidst expectations of further global economic growth while lower supplies may buoy base metals’ prices.
Copper futures for September delivery added 0.75% to trade at $3.002 a pound on the Comex division of the New York Mercantile Exchange on Tuesday after having advanced 1.4% in the previous session. This marked its highest level since November 2014.
Mining heavyweights BHP Billiton PLC and Antofagasta PLC were among the top performers in the market. Shares of BHP Billiton PLC jumped more than 3 percent while those of Antofagasta PLC even jumped more than 4.8 percent. Both copper miners tripled their interim dividend payment after reporting a sharp rise in half-year earnings.
Sterling tumbled 0.44% versus its American counterpart on Tuesday, sending the pair GBP/USD down to as low as 1.28400. The pound has been under pressure as investors expected that the Bank of England would hold its interest unchanged in the coming months due to concerns over the economic impact from Brexit.
Buy Stop at 7370.00, Take profit at 7400.00, Stop loss at 7360.00