UK stocks climb as government borrowing eases and resource stocks rise
The FTSE 100 joined the second day of a rally for global equities on Wednesday, with a surge in heavily weighted resource stocks and signs of an easing in government borrowing.
The UKX index,
rose 1.5% to 6,966.33, after gaining 0.5% in the previous session and falling 2.3% on Monday, which marked the biggest drop for the FTSE 100 since May. GBPUSD,
was largely stable against the dollar.
Another rise in global equities led to other assets, such as CL00 oil prices,
gaining more than 1% as commodity rose for a second day in an effort to recoup Monday’s heavy losses. BP BP shares,
and Royal Dutch Shell RDS.A,
climbed more than 2% each.
UK government figures showed net borrowing in June fell by £ 5.5bn ($ 7.48bn), or 19.4%, from the previous month, with the driving force on the side of revenues, with total revenues increasing by 18%, analysts at Investec Economics noted.
“Overall, while net public sector borrowing remains extraordinarily high compared to a historical perspective, this is a marked improvement over last year’s figures, in which the PSNBx (borrowing net public sector net of banks) peaked at over £ 47 billion in April 2020, ”the Investec analyst said. Ellie Henderson. An economic recovery since then has helped increase tax revenues and reduce government spending for COVID-19 pandemic programs, she said.
Among the moving actions, the actions of Next NXT,
jumped 6%, after the clothing retailer lifted its 2021 profit forecast and declared a special dividend to return excess cash to shareholders.
Mulberry Group MUL luxury goods company,
reported lower pre-tax profit for fiscal 2021 thanks to lower costs and said its year-to-date performance has been driven by both the UK and Asia.
The mining stocks were the center of attention, such as the stocks of Antofagasta ANTO,
which announced a drop in copper production for the second quarter of the year and reaffirmed its annual targets. The company also expects moderate inflationary pressures to come.