FTSE 100 movers: Financials gain but miners slump on China news
London’s FTSE 100 was up 0.8% to 7,196.59 in afternoon trade as investors digested the latest US non-farm payrolls report.
Financial stocks such as Barclays, Prudential and Royal Bank of Scotland were among the best performers amid reports US President Donald Trump is prepared to scale back much of the Dodd-Frank legislation that was put in place after the financial crisis. Prudential and Barclays both have large US operations.
Broadcaster ITV was also on the front foot as Investec upgraded the stock to ‘buy’ from ‘hold’ and lifted the price target to 228p from 200p.
“While we remain concerned over long-term TV prospects, near-term sentiment is unusually gloomy post a tougher FY16 and Brexit/domestic fears. These negatives look increasingly priced in, in our view, with recent better/less bad trade press comment on TV advertising. We see strategic value/M&A questions continuing given ITV’s positioning, a big US stakeholder and weak sterling.”
On the downside, miners declined following news that China unexpectedly lifted short-term interest rates. The PBOC raised reverse repurchase agreements by ten basis points to 2.35%.
Disappointing manufacturing data out of China also weighed on the sector. The Caixin manufacturing purchasing managers' index, a private gauge of factory activity, nudged down to 51.0 in January from 51.9 in December. This remained out of contraction territory for a seventh straight month but was below economists’ forecasts of 51.2.
Glencore, Rio Tinto, Antofagasta, Anglo American, BHP Billiton and Fresnillo were all in the red.
Risers
Barclays (BARC) 228.45p 3.21%
ITV (ITV) 207.10p 2.78%
Prudential (PRU) 1,591.50p 2.51%
Legal & General Group (LGEN) 238.30p 2.36%
Aviva (AV.) 491.30p 2.27%
Sage Group (SGE) 635.50p 2.17%
Royal Bank of Scotland Group (RBS) 226.90p 1.98%
DCC (DCC) 6,415.00p 1.91%
Admiral Group (ADM) 1,826.00p 1.84%
Standard Life (SL.) 354.30p 1.72%
Fallers
Glencore (GLEN) 315.15p -3.03%
Rio Tinto (RIO) 3,428.00p -2.48%
Antofagasta (ANTO) 820.00p -2.44%
Dixons Carphone (DC.) 306.80p -2.14%
Anglo American (AAL) 1,349.00p -2.07%
BHP Billiton (BLT) 1,410.50p -1.57%
Johnson Matthey (JMAT) 3,193.00p -1.45%
Fresnillo (FRES) 1,467.00p -1.15%
Royal Mail (RMG) 405.80p -1.14%
Rolls-Royce Holdings (RR.) 670.00p -0.59%