London close: FTSE gains on mining, oil stocks ahead of BoE on Thursday

The UK central bank was expected to leave interest rates unchanged, but much attention will be focused on its inflation report.

Monex analysts said the inflation report would offer the BoE a chance to revise its outlook for the economy, potentially in a slightly more hawkish direction given resilient economic growth, rising inflation, and an improving labour market.

The FTSE 100 closed Wednesday up 0.59% or 43.03 points to 7,385.24, and the FTSE 250 closed up by 0.30% to 19,876.81. Wall St and Europe were mostly mildly lower.

"The FTSE is gaining ground even amid the furore over Trump’s sacking of FBI Director James Comey," said IG market analyst Joshua Mahony.

"Parallels have been drawn with the Nixon scandal, and should this unfold in a similar manner, we could be looking at one of the most incredible political episodes in the history of the United States," opined Mahony.

"Crucially for markets, as the chances of an impeachment hearing increase, so we will have to see the Trump trade unwind, raising the vulnerability of US stocks in particular," he said.

Connor Campbell, financial analyst at Spreadex, said the thrust of the FTSE's momentum stemmed from the commodity sector.

BP and Shell were racing ahead after two sets of US data showed bigger than expected falls in stores of the black liquid in that country last week.

"Mining stocks ignored copper's stagnation to instead focus on gold's gains," he said. This saw Anglo American, BHP Billiton and others rise.

"Tomorrow will push the pound back into the spotlight, however, as the Bank of England both votes on interest rates and reveals its latest inflation report," said Campbell.

Michael Hewson, chief market analyst at CMC Markets UK, said European markets had held up fairly well on Wednesday.

"Amongst the best performers has been house builder Barratt Developments who reported that it expected that its profits for the full year would be at the top end of expectations," he said.

Barratt expected its full-year pre-tax profit be at the top end of analyst estimates for £675m-£733m, saying completions would hit their highest level in nine years at about 17,350.

"Retail stocks have also enjoyed a respite after some positive broker notes which have helped lift Primark-owner Associated British Foods, as well as Next and Marks & Spencer."

Other sectors performing well in London include utilities, insurance and banks, while several pharmaceuticals and commercial property outfits were retreating.

Barclays was in positive territory after chief executive Jes Staley apologised to shareholders for his attempts to identify an internal whistleblower, adding the bank did not currently see a need to shift British jobs or significant operations elsewhere.

Catering company Compass edged higher after it reported a rise in first-half revenue as it benefited from a weaker pound and announced a £1bn special dividend.

Defence contractor BAE Systems firmed as it started the year with good momentum, adding that trading was in line with its expectations.

ITV softened after it said advertising revenue fell in the first quarter and was expected to remain down for the first half.

Market Movers

FTSE 100 (UKX) 7,385.24 0.59%
FTSE 250 (MCX) 19,876.81 0.30%
techMARK (TASX) 3,555.23 -0.12%

FTSE 100 - Risers

Hargreaves Lansdown (HL.) 1,446.00p 2.70%
Associated British Foods (ABF) 2,877.00p 2.38%
Barclays (BARC) 210.15p 2.36%
Anglo American (AAL) 1,042.50p 2.16%
Barratt Developments (BDEV) 609.00p 2.10%
SSE (SSE) 1,460.00p 2.03%
BT Group (BT.A) 311.90p 1.93%
Standard Chartered (STAN) 734.40p 1.87%
Kingfisher (KGF) 348.60p 1.72%
Burberry Group (BRBY) 1,629.00p 1.69%

FTSE 100 - Fallers

ITV (ITV) 196.20p -2.29%
Rolls-Royce Holdings (RR.) 873.00p -1.91%
Pearson (PSON) 722.00p -1.63%
Micro Focus International (MCRO) 2,461.00p -1.16%
Hikma Pharmaceuticals (HIK) 1,956.00p -1.16%
Sage Group (SGE) 691.00p -1.07%
Intu Properties (INTU) 274.40p -0.87%
Informa (INF) 650.50p -0.84%
Experian (EXPN) 1,675.00p -0.83%
RSA Insurance Group (RSA) 617.00p -0.80%

FTSE 250 - Risers

Vesuvius (VSVS) 591.00p 8.84%
Petra Diamonds Ltd.(DI) (PDL) 135.40p 5.53%
Marshalls (MSLH) 411.60p 4.73%
Greencore Group (GNC) 241.70p 3.91%
Ferrexpo (FXPO) 163.90p 3.87%
Nostrum Oil & Gas (NOG) 474.30p 3.67%
Vedanta Resources (VED) 626.00p 3.56%
IP Group (IPO) 145.10p 3.20%
Hill & Smith Holdings (HILS) 1,387.00p 2.89%
Indivior (INDV) 339.20p 2.79%

FTSE 250 - Fallers

TalkTalk Telecom Group (TALK) 168.80p -7.51%
Euromoney Institutional Investor (ERM) 1,045.00p -4.04%
Vectura Group (VEC) 145.00p -3.27%
Renishaw (RSW) 3,492.00p -3.16%
Spectris (SXS) 2,746.00p -3.11%
Cobham (COB) 133.90p -2.26%
Serco Group (SRP) 117.10p -2.25%
Allied Minds (ALM) 144.90p -2.16%
ZPG Plc (ZPG) 359.80p -1.99%
Carillion (CLLN) 221.70p -1.95%