Image Source: Pexels
 

Amidst global market caution ahead of U.S. economic data, the release of the Federal Reserve's July meeting minutes, and speeches from policymakers this week, London's FTSE 100 slightly increased on Wednesday, helped by miners. As the closing approaches, the blue-chip FTSE 100 index is up 0.4%.

Despite a decline in copper prices, industrial metal miners saw the largest gains in the benchmark index, rising 1.6%. As bullion remained below record high prices after a rally driven by Western fund inflows and confidence over U.S. rate cuts, precious metal miners saw a 1.2% increase. Heavyweight energy shares contributed to the previous session's 1% decline in the benchmark index.

Rising prices for iron ore and aluminum have caused British mining equities to trade higher. The price of iron ore futures has surged to its highest point in a week due to encouraging property policies in China, the world's largest customer, which have rekindled expectations of stronger demand in the months ahead. While the Precious Metals and Mining index is up 1.2%, the London Industrial Metals and Mining index is up 1.81%. Among the top percentage gainers on the FTSE 100 index are the shares of significant mining companies, such as Rio Tinto, Fresnillo, Anglo American, and Glencore, which have all seen increases of 1.2-1.7%.

British property developer Watkin Jones' shares plummet over 29% to 36 pence, making it the top loser among London stocks. The stock is at its lowest level since October 2023. The company does not expect its adjusted operating profit in fiscal year 2025 to exceed that of fiscal year 2024. It adds that overall market activity through the summer has been slower than forecasted, mainly due to the continued uncertainty over the pace of interest rate cuts. Watkin Jones sees its 2024 adjusted operating profit to be in the range of 10 million pounds to 12 million pounds ($13.03 million-$15.63 million). As of the last close, the stock is down about 9% year-to-date.

With a 0.4% decrease, the energy sector led losses on Wednesday as well. This was due to falling oil prices on projections that indicated rising US crude stockpiles and prospects of a reduction in Middle East tensions. After a sharp sell-off earlier this month and encouraging U.S. data the previous week, global markets took a break. In light of recent dovish remarks from several Fed officials, investors are anxiously anticipating Fed Chair Jerome Powell's speech at the Jackson Hole conference in Wyoming later this week. Powell is expected to acknowledge the argument for a September rate decrease.
 

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8225

• Primary resistance 8400
• Primary objective 8600
• Daily VWAP Bearish
• Weekly VWAP Bullish

(Click on image to enlarge)

More By This Author: