London's FTSE 100 eyes biggest monthly rise since Feb as earnings, energy provide lift

Kitco Media
By Reuters
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Reuters
London's FTSE 100 eyes biggest monthly rise since Feb as earnings, energy provide lift teaser image

July 31 (Reuters) - London's FTSE 100 hit an intraday record high for the third session in a row on Friday, and was set to register weekly and monthly gains, as robust earnings buoyed markets through ​a week of central bank decisions and Middle East hostilities.

The blue-chip FTSE 100 ​index (.FTSE), rose 0.5% to 10,947.73 points by 1003 GMT, poised for ⁠its biggest monthly jump since February, and sharpest weekly gain in over two months, ​while the midcap FTSE 250 (.FTMC), climbed 0.4%.

On Friday, miners were the biggest boosts to the ​index, with industrial metal miners (.FTNMX551020), rising 2.1%, tracking a rise in copper prices. Precious metal miners (.FTNMX551030), rose 0.9%.

Heavyweight energy stocks (.FTNMX601010), added 1.4%, despite a dip in oil prices to below $90 a barrel. The sector ​has gained over 15% in July, set to outperform peers, as U.S.-Iran hostilities escalated, ​threatening fuel supplies.

Corporate earnings were in full swing, with investor attention split between reports and macro factors.

NatWest (NWG.L), ‌gained ⁠4.3% after the lender reported a better-than-expected first-half operating profit before tax of £4.3 billion ($5.8 billion) and raised its outlook for the year.

IG Group (IGG.L), sank 10.2% to the bottom of the FTSE 100 after it agreed to acquire U.S. daily fantasy sports and prediction markets operator Underdog ​for up to $1.3 billion.

Sainsbury's (SBRY.L), ​inched up 2.5% after ⁠the supermarket chain agreed to sell Argos for at least £120 million ($161 million), exiting the general retail business.

This week, U.S. Federal Reserve Chair Kevin ​Warsh said policymakers were committed to combating inflation after a divided ​Fed kept ⁠interest rates unchanged, providing little clarity on the central bank's next move.

The Bank of England on Thursday also held rates, but the number of dissenters stood at three compared with expectations ⁠of two, ​as the impact of the Iran conflict on ​the economy worried policymakers.

Greggs (GRG.L), shed 6% to end at the bottom of the FTSE 250 after RBC downgraded the ​fast-food chain's stock to "sector perform" from "outperform".

Reporting by Purvi Agarwal in Bengaluru; Editing by Vijay Kishore

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