London midday: FTSE maintains gains as energy, mining stocks rally
London stocks were still firmly higher by midday on Monday, underpinned by a strong showing in the energy and mining sectors amid optimism over lockdown easing and a slowdown in new Covid-19 cases.
The FTSE 100 was up 2.2% at 5,924.21.
Joshua Mahony, senior market analyst at IG, said: "The impending easing of lockdown measures throughout the US and Europe continues to provide both a source of both optimism and anxiety given the potential implications if they are successful or not.
"However, Jerome Powell has reminded us that markets are likely to remain well supported irrespective of the outcome of the impending lockdown easing policies, with both Powell and Lagarde continuing to provide a ‘whatever it takes’ approach to dealing within this crisis."
Sentiment was also boosted by signs of a slowdown in new coronavirus cases.
Pantheon Macroeconomics said: "A renewed downward trend in daily new cases has emerged in Western Europe over the past week; the 7-day average has dropped from 4.2K to 2.4K, and it's still falling. We see no sign of any uptick in cases since the gradual opening across the continent began.
"UK cases have now dropped by about 35% from the peak in mid-April, and deaths are down nearly 60%. Increased testing has slowed the downtrend in confirmed cases."
In equity markets, precious metals miner Fresnillo was sitting pretty at the top of the FTSE 100 after gold prices surged to a near eight-year high.
Oil giants BP and Shell gushed higher, with oil prices up as lockdown eases and supply tightens. West Texas Intermediate was ahead 7.6% at $31.67 a barrel and Brent crude was 6% higher at $34.46.
Miners were also on the rise, with Anglo American, Glencore, BHP and Rio all higher.
British Airways and Iberia parent IAG was on the front foot, along with cruise operator Carnival and travel company TUI.
Hochschild Mining surged after saying it was restarting operations at its Inmaculada and Pallancata mines in Peru, while Mitchells & Butlers rallied as the pub chain said the waiver agreed with its lenders to avoid a breach of its financing terms had been extended for three weeks.
Centamin advanced as the gold miner reiterated its financial guidance for the current year after the rising price of gold helped push annual profit up by 13%.
On the downside, Ocado was weaker on news that German discounter Aldi will trial grocery home delivery with Deliveroo.
Market Movers
FTSE 100 (UKX) 5,924.21 2.15%
FTSE 250 (MCX) 16,053.49 2.51%
techMARK (TASX) 3,640.37 1.75%
FTSE 100 - Risers
Fresnillo (FRES) 807.20p 9.63%
Anglo American (AAL) 1,540.60p 7.48%
easyJet (EZJ) 533.60p 6.75%
International Consolidated Airlines Group SA (CDI) (IAG) 180.10p 6.43%
Carnival (CCL) 942.00p 6.19%
BHP Group (BHP) 1,498.80p 5.92%
Rio Tinto (RIO) 4,145.00p 5.78%
Melrose Industries (MRO) 92.34p 5.65%
Smith & Nephew (SN.) 1,607.00p 5.41%
Centrica (CNA) 37.97p 5.11%
FTSE 100 - Fallers
Ocado Group (OCDO) 1,934.50p -1.05%
Legal & General Group (LGEN) 183.45p -0.60%
Pennon Group (PNN) 1,109.50p -0.45%
Severn Trent (SVT) 2,390.00p -0.38%
RSA Insurance Group (RSA) 361.00p -0.17%
Rightmove (RMV) 501.80p -0.16%
Morrison (Wm) Supermarkets (MRW) 189.35p -0.13%
BT Group (BT.A) 107.50p -0.09%
Admiral Group (ADM) 2,285.00p -0.09%
Barratt Developments (BDEV) 480.30p 0.00%
FTSE 250 - Risers
Aston Martin Lagonda Global Holdings (AML) 38.72p 17.04%
TUI AG Reg Shs (DI) (TUI) 298.70p 13.62%
Hammerson (HMSO) 53.56p 11.40%
Hochschild Mining (HOC) 179.10p 11.15%
FirstGroup (FGP) 53.50p 9.59%
WH Smith (SMWH) 902.00p 8.98%
PureTech Health (PRTC) 253.50p 8.89%
PayPoint (PAY) 688.00p 8.52%
Fidelity Special Values (FSV) 175.00p 8.32%
Wizz Air Holdings (WIZZ) 2,788.00p 7.07%
FTSE 250 - Fallers
Airtel Africa (AAF) 36.20p -7.18%
Marston's (MARS) 32.90p -3.06%
Vistry Group (VTY) 716.50p -2.39%
Countryside Properties (CSP) 300.00p -2.35%
Senior (SNR) 55.00p -1.79%
Royal Mail (RMG) 173.25p -1.71%
OneSavings Bank (OSB) 247.20p -1.67%
JPMorgan Indian Investment Trust (JII) 484.00p -1.63%
TBC Bank Group (TBCG) 744.00p -1.20%
Biffa (BIFF) 207.50p -1.19%