FTSE 100 rises as miners, ITV advance
U.K. stocks advanced Monday, with mining shares lifted after key metals buyer China posted better-than-expected economic growth figures, while ITV PLC shares rose on news of that the broadcaster has named a new chief executive.
The FTSE 100 index UKX, +0.59% rose 0.4% to 7,411.71. All sectors gained ground, fronted by the basic materials, health care and oil and gas groups. A win Monday would be the index’s first in four sessions. Last week, it finished up 0.4%.
Mining shares were among the strongest performers Monday after China’s second-quarter gross domestic product growth came in at 6.9%, higher than a 6.8% estimate in a Wall Street Journal survey of economists. Mining shares can be sensitive to China data, as the country is a major consumer of industrial and precious metals.
“The private-sector dominated manufacturing sector will continue to lead the recovery, which is positive for productivity growth and can also help to ease debt concerns,” said HSBC economist Julia Wang in a note.
Shares of precious metals miner Fresnillo PLC FRES, +1.89% climbed 1.9%, Glencore PLC GLEN, +2.07% GLCNF, +1.97% added 1.5%, Anglo AmericanAAL, +2.37% put on 1.9% and Rio Tinto PLC RIO, +0.94% RIO, +1.37% RIO, +0.60% climbed 1.2%.
Also, BHP Billiton PLC BLT, +0.96% BHP, +0.16% BHP, +1.97% picked up 1% and Randgold Resources Ltd. RRS, +0.95% tacked on 0.7%.
Mining stocks make up 88% of the weighting in the basic materials group, and that group contributes an 8% weighting to the FTSE 100, FactSet data show.
Meanwhile, ITV PLC shares ITV, +3.20% popped up 2% after the broadcaster, whose stable of shows includes “Downton Abbey,” said easyJet PLC’s EZJ, +0.78% boss Carolyn McCall will become its new chief executive on Jan. 8. EasyJet said it’s already started looking for McCall’s successor. Shares of the budget airline fell 0.5%.
The pound GBPUSD, -0.2748% fetched $1.3071, down from $1.3102 late Friday in New York. The pound climbed more than 1% last week.
The U.K.’s Brexit secretary David Davis was back in Brussels Monday to resume talks with European Union officials about Britain’s exit from the bloc.