British shares rebound on mining, travel stocks boost – Reuters

The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo

  • Royal Dutch Shell drops on $400 mln hit from Hurricane Ida
  • Auto retailer Pendragon gains on strong quarterly performance
  • Recruiter Robert Walters gains on strong profit forecast
  • FTSE 100 up 0.8%, FTSE 250 adds 0.6%

Oct 7 (Reuters) – London’s FTSE 100 jumped on Thursday, led by gains in travel and heavyweight mining stocks, while Workspace Group surged as demand for its office spaces recovered.

The blue-chip FTSE 100 (.FTSE) gained 0.8%, with miners Glencore (GLEN.L), Anglo-American (AAL.L) and Rio Tinto (RIO.L) among the top boosts. Industrial (.FTNMX551020) and precious metal miners (.FTNMX551030) added 2% each on higher metal prices.

The FTSE 100 has gained about 9.5% so far this year and the mid-cap index is up nearly 10% amid re-opening optimism and accommodative central bank policies.

However, a recent rise in inflation on the back of surging oil and gas prices has weighed on UK’s benchmark indices as investors now bet on a sooner-than-expected pull back of easy monetary policies.

“Investors are now very much aware we are entering a period where we are going to have continued inflation and it is not going to be ridiculously transitory either,” said Danni Hewson, an analyst at AJ Bell.

“But there is a lot of hope still that it will not last beyond a few months.”

Royal Dutch Shell (RDSa.L) slipped 1.2% after it warned of a $400 million hit to third-quarter earnings from the damage caused by August’s Hurricane Ida, but also flagged a boost to cash flows on higher energy prices. read more

Homebuilder stocks (.FTNMX402020) climbed 0.5% after mortgage lender Halifax said British house prices rose by the most in almost 15 years in September. read more

The domestically-focused mid-cap index (.FTMC) advanced 0.6%, with travel stocks (.FTNX405010) among the top performers.

Shares of online auto retailer Pendragon PLC (PDG.L) climbed 4.6% after reporting a strong third-quarter performance.

Workspace (WKP.L) climbed 3.8% after the office space provider said the number of people using its centres in London peaked at over half of pre-pandemic levels by the end of September. read more

British recruitment firm Robert Walters (RWA.L) rose 2.6% after it said its annual profit would be ahead of expectations as it benefits from a hot jobs market. read more

Reporting by Bansari Mayur Kamdar and Shashank Nayar; Editing by Subhranshu Sahu and Krishna Chandra Eluri

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