London close: Stocks firmly higher as energy and mining plays advance

London stocks closed significantly higher on Monday, finishing above 6,000 for the first time in almost three weeks, after 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 ended the day up 4.29% at 6,048.59, and the FTSE 250 was ahead 3.63% at 16,230.03.

Sterling was mixed against its major trading pairs, however, rising 0.6% on the dollar to $1.2189, but slipping 0.2% against the euro to €1.1168.

“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,” said Joshua Mahony, senior market analyst at IG.

“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.

“A renewed downward trend in daily new cases has emerged in Western Europe over the past week; the seven-day average has dropped from 4.2K to 2.4K, and it's still falling,” said analysts at Pantheon Macroeconomics.

“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%.”

Pantheon noted that increased testing had slowed the downtrend in confirmed cases.

In equity markets, precious metals miner Fresnillo maintained its gains to close up 9.14% after gold prices surged to a near eight-year high.

Oil giant BP was ahead 8.2% and its peer Shell added 8.81%, with oil prices up as lockdown eases and supply tightens.

West Texas Intermediate was last up 11.38% at $32.78 per barrel, and Brent crude was 8.65% higher at $35.30.

Miners were also on the rise, with Anglo American up 11.61%, Glencore adding 7.63%, BHP ahead 8.68% and Rio Tinto 7.75% higher.

British Airways and Iberia parent IAG was on the front foot, rising 11.04%, as cruise operator Carnival surged 14.59% and travel company TUI gained 313.39%.

Hochschild Mining surged 12.14% after saying it was restarting operations at its Inmaculada and Pallancata mines in Peru, while Mitchells & Butlers rallied 7.92% 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 1.13% 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 2.4% weaker on news that German discounter Aldi will trial grocery home delivery with Deliveroo.

Market Movers

FTSE 100 (UKX) 6,048.59 4.29%
FTSE 250 (MCX) 16,230.03 3.63%
techMARK (TASX) 3,686.06 3.03%

FTSE 100 - Risers

Carnival (CCL) 1,015.00p 14.59%
Anglo American (AAL) 1,600.20p 11.61%
International Consolidated Airlines Group SA (CDI) (IAG) 188.15p 11.04%
easyJet (EZJ) 551.60p 10.47%
InterContinental Hotels Group (IHG) 3,568.00p 10.23%
Whitbread (WTB) 2,913.00p 9.22%
Centrica (CNA) 39.36p 9.21%
Fresnillo (FRES) 805.00p 9.14%
Rolls-Royce Holdings (RR.) 272.20p 9.01%
BHP Group (BHP) 1,535.60p 8.66%

FTSE 100 - Fallers

Ocado Group (OCDO) 1,903.50p -2.61%
Morrison (Wm) Supermarkets (MRW) 188.85p -0.45%
Auto Trader Group (AUTO) 500.00p -0.40%
Admiral Group (ADM) 2,290.00p 0.13%
Hikma Pharmaceuticals (HIK) 2,460.00p 0.20%
Sainsbury (J) (SBRY) 187.80p 0.29%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,666.00p 0.49%
Pennon Group (PNN) 1,123.00p 0.76%
Tesco (TSCO) 241.90p 0.79%
BAE Systems (BA.) 501.00p 0.91%

FTSE 250 - Risers

Hammerson (HMSO) 58.96p 22.40%
Wood Group (John) (WG.) 195.25p 14.28%
TUI AG Reg Shs (DI) (TUI) 296.40p 13.39%
Network International Holdings (NETW) 383.00p 12.98%
Hochschild Mining (HOC) 181.00p 12.14%
Aston Martin Lagonda Global Holdings (AML) 37.50p 12.07%
WH Smith (SMWH) 929.50p 12.06%
IP Group (IPO) 56.90p 11.57%
Watches of Switzerland Group (WOSG) 244.00p 10.91%
PureTech Health (PRTC) 249.50p 10.89%

FTSE 250 - Fallers

Airtel Africa (AAF) 36.40p -6.79%
Petropavlovsk (POG) 26.20p -3.68%
Marston's (MARS) 33.20p -2.76%
Clarkson (CKN) 2,420.00p -2.02%
Rank Group (RNK) 133.40p -1.62%
Senior (SNR) 55.10p -1.61%
Dixons Carphone (DC.) 72.00p -1.03%
OneSavings Bank (OSB) 249.20p -0.88%
Biffa (BIFF) 208.50p -0.71%
Royal Mail (RMG) 177.10p -0.54%