London close: FTSE finishes higher as gold miners lifted by weaker dollar
London stocks clawed back gains to finish higher on Thursday as gold miners were supported by a rally in price of the yellow metal.
The FTSE finished up up 0,20% to 7,120.26 points.
Fresnillo and Randgold Resources were the standout gainers as a weaker dollar sent gold prices higher.
"These names have been heavily beaten down in the past two months, as gold and silver retreat, but perhaps their tribulations are over," said IG's Chris Beauchamp.
"The US dollar is weakening, and there finally seems to be some real staying power in the gold bounce. The greenback’s rally has hit a brick wall over the past two weeks, as the effects of the Fed meeting wear off, and with a light schedule of US data this week it is not surprising to see the dollar lose some of its powerful momentum."
South Africa’s Mediclinic International and Old Mutual – which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange – were high risers, benefiting from a strong rand.
On the downside, Dixons Carphone was weaker as its stock went ex-dividend.
Meanwhile, oil wavered after the Energy Information Administration said US crude inventories increased by 0.6m barrels last week to 486.1m barrels.
Brent crude rose 0.10% to $56.28 per barrel and West Texas Intermediate fell 0.42% to $53.83 per barrel at 1624 GMT.
During the previous session, a report from the American Petroleum Institute revealed a 4.2m barrel rise in US crude stocks in the week to 23 December, surprising analysts’ who expected a decline of 2.1m barrels.
Elsewhere, investors were digesting the latest figures from mortgage lender Nationwide, which showed that house prices rose more than expected in December.
Annual house price growth was 4.5%, up from 4.4% the month before and beating expectations of 3.8% growth.
On the month, house prices were up 0.8% having been flat in November, and ahead of expectations for 0.2% growth. Meanwhile, the average house price was £205,898 versus £204,947 last month.
In the US, the number of Americans filing for unemployment benefits fell a touch less than expected last week, according to the Labor Department. US initial jobless claims declined by 10,000 from the previous week’s unrevised level to 265,000. Economists had been expecting a drop to 264,000.
The US trade deficit in goods widened to $65.3bn in November from a downwardly revised $61.9bn in October, missing expectations of $61.5bn, separate data showed.
Another report revealed US wholesale inventories rose 0.9% on the month in November, beating forecasts for a 0.2% increase.
Market Movers
FTSE 100 (UKX) 7,120.26 0.20%
FTSE 250 (MCX) 18,029.50 0.09%
techMARK (TASX) 3,370.03 -0.04%
FTSE 100 - Risers
Randgold Resources Ltd. (RRS) 6,415.00p 4.82%
Fresnillo (FRES) 1,224.00p 4.62%
Hikma Pharmaceuticals (HIK) 1,857.00p 1.92%
United Utilities Group (UU.) 907.50p 1.51%
Mediclinic International (MDC) 773.00p 1.38%
Old Mutual (OML) 204.60p 1.34%
Direct Line Insurance Group (DLG) 367.20p 1.30%
Capita (CPI) 522.50p 1.16%
Severn Trent (SVT) 2,237.00p 1.13%
Coca-Cola HBC AG (CDI) (CCH) 1,733.00p 1.11%
FTSE 100 - Fallers
Ashtead Group (AHT) 1,572.00p -2.30%
Smiths Group (SMIN) 1,411.00p -1.67%
Lloyds Banking Group (LLOY) 62.76p -1.24%
Antofagasta (ANTO) 677.00p -1.24%
Rolls-Royce Holdings (RR.) 678.00p -1.24%
Standard Chartered (STAN) 651.80p -1.20%
easyJet (EZJ) 1,002.00p -1.18%
Barclays (BARC) 222.35p -1.07%
Dixons Carphone (DC.) 349.00p -1.05%
BHP Billiton (BLT) 1,301.00p -0.80%
FTSE 250 - Risers
Hochschild Mining (HOC) 211.30p 7.15%
Centamin (DI) (CEY) 140.70p 4.69%
Polymetal International (POLY) 861.00p 3.73%
TalkTalk Telecom Group (TALK) 175.00p 3.49%
Marshalls (MSLH) 287.10p 3.20%
NMC Health (NMC) 1,582.00p 3.13%
Petra Diamonds Ltd.(DI) (PDL) 158.80p 2.45%
Inmarsat (ISAT) 757.00p 2.16%
Ted Baker (TED) 2,828.00p 2.06%
Allied Minds (ALM) 458.10p 1.98%
FTSE 250 - Fallers
Metro Bank (MTRO) 2,988.00p -5.02%
Nostrum Oil & Gas (NOG) 383.00p -2.99%
Brown (N.) Group (BWNG) 219.30p -2.58%
John Laing Group (JLG) 265.80p -2.53%
Renishaw (RSW) 2,493.00p -2.27%
Rotork (ROR) 242.00p -2.22%
OneSavings Bank (OSB) 330.60p -2.16%
Mitie Group (MTO) 224.80p -1.83%
Vesuvius (VSVS) 393.20p -1.82%
Morgan Advanced Materials (MGAM) 288.90p -1.70%