Summary:
Global stocks cheered softer-than-expected US jobs data. Britain's FTSE 100 hit a record high on Friday and marked its second straight week of gains.
Global stocks cheered softer-than-expected US jobs data that had put investors on edge. FTSE 100 hit a fresh record high on Friday and registered a second straight week of gains.
Signs of easing inflation, hopes of early interest rate cuts by the BOE and attractive prices have helped boost confidence in UK equities. Interest-rate-sensitive homebuilder stocks were benefited in particular.
UK service sector saw activity surge to the highest level in almost a year last month despite increased cost pressures. That marked the sixth consecutive month in positive territory.
Standard Chartered said its earnings grew over the start of the year due to its big presence in Asia. HSBC’s Q1 results were likewise buoyant, bucking the trend of UK banks which have seen profits dwindle.
Anglo American CEO met on Friday South African mines minister Gwede Mantashe for the first time to discuss the bid from BHP. Glencore is also studying an approach for the company, sources told Reuters.
Anglo American share price has soared by roughly 39% so far, which played a major role in propelling the benchmark index. The UK stock market have gained nearly the same as its German and France peers.
The FTSE 100 has entered overbought territory as indicted by RSI – a sign of potential profit-taking. Political uncertainties could weigh against stocks as Tories were trounced in the latest local elections.
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