U.K. Shares Turn Higher, Buoyed By Trump and Rising Copper Price
U.K. stocks edged higher on Monday, backed by positive sentiment from global shares after U.S. President Donald Trump stated last Thursday that his administration would publish a “phenomenal” tax plan in the next few weeks.
The benchmark FTSE 100 index rose nearly 1%, which is on track for its highest close since in nearly a month, spurred also by miner companies as copper price soared to a fresh 20-month high on Monday.
Copper prices extended gains on Monday on the back of a strike at the world’s largest copper mine and the threat of supply disruptions at an Indonesia mine.
Last week, talks between management and workers at BHP’s Billiton’s Escondida in Chile broke down, which resulted in a strike since Thursday. BHP on Friday said that it would not be able to fulfill contracts for copper deliveries or shipments given this prolonged strike.
Meanwhile, Freeport-McMoRan Inc. stated that it would make cuts to output in its Grasberg mine in Indonesia if the company could not receive an export license from the government by midmonth.
Higher metal price pushed miners to the top of gainer list on FTSE index. Shares of Glencore PLC jumped 2.15% while those of Antofagasta PLC and Anglo American PLC climbed 1.56% and 2.14%, respectively.
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