Sector movers: Metal prices boost miners
Miners and oil companies were leading the stock market revival in London on Tuesday, while other industrial and engineering stocks were providing a weight.
Miners and industrial metals sectors led the way as metals prices climbed on the back of supply softness.
A weaker dollar was good for commodities and miners after a tough start to the week, said market analyst Mike van Dulken at Accendo Markets.
Anglo American, Glencore and Antofagasta were all moving higher as they bounced back from losses at the start of the week sparked by the People's Bank of China loosening lending requirements for domestic banks.
Joshua Mahony, market analyst at IG, said: "To a large degree the decision to cut the reserve ratio highlights a fear that the trade war could continue for some time yet. However, for the miners, a dramatic increase in the amount of cash available for banks to loan out will drive investment, in turn benefitting companies whose product is demanded in times of growth.
"Over the long term, the mining sector looks a good buy, yet much of the short-term volatility will be dictated by affairs in China and the pathway of US trade negotiations."
Iron ore producer Ferrexpo rallied on the back of a well-received third-quarter production update and rising prices.
Broker SP Angel noted that iron ore futures in China rose to the highest level in almost three weeks as robust demand from steel mills indicates rising production.
Energy stocks were a big boost to the FTSE 100 as Shell and BP were lifted on the rising tide of crude prices. Brent crude was up 0.8% to $84.56 a barrel as more evidence emerged that exports from Iran are declining due to incoming US sanctions and as Hurricane Michael approaching the Gulf of Mexico.
Oil services engineers Wood Group and Hunting were in the green, but Petrofac was not. Neither were engineers listed in the industrial segment, with Boycote, Hill & Smith, IMI, RHI Magnetisa, Rotork, Spirax-Sarco and Weir were all in the red.
Top performing sectors so far today
Industrial Metals & Mining 5,169.32 +2.06%
Oil Equipment, Services & Distribution 15,503.80 +1.19%
Industrial Transportation 2,756.00 +0.99%
Mining 17,224.69 +0.91%
Automobiles & Parts 8,735.05 +0.56%
Bottom performing sectors so far today
Leisure Goods 8,505.13 -6.32%
Industrial Engineering 11,898.81 -2.42%
Electronic & Electrical Equipment 6,283.94 -2.09%
General Industrials 6,259.77 -1.86%
Mobile Telecommunications 3,411.75 -1.59%