FTSE 100 hanging at 11-month high as miners, housing shares surge

U.K. stocks edged up Monday, with gains for miners and housing shares helping to keep the blue-chips benchmark at its highest in 11 months.

The FTSE 100 picked up 0.6% to 6,632.25, adding to Friday’s 0.9% advance Stocks on Friday moved solidly higher after a stronger-than-expected reading of U.S. jobs data eased concerns about economic growth in the world’s largest economy.

The benchmark on Friday ended at its strongest level since Aug. 11, according to Dow Jones data, at 6,590.64.

“The FTSE is continuing to prove its post-Brexit resilience, boosted by a wave of multinationals ostensibly excited by the cheaper pound,” wrote Connor Campbell, financial analyst, at Spreadex, in a note.

The pound on Monday was buying $1.2899 compared with $1.2954 late Friday.

Mining shares pushed higher Monday, with the index topped by Glencore PLC  and Anglo American PLC as their shares rose 5% and 4.4%, respectively. Copper miner Fresnillo PLC picked up 3.8%.

Data released in China on Sunday showed the country’s consumer price index rose 1.9% in June from a year earlier. That was slightly less than May’s increase of 2%, but it was higher than The Wall Street Journal consensus estimate of a 1.8% rise. The reading still gives the country’s central bank room to ease monetary policy, analysts said.

Mining shares tend to be sensitive to developments in China as the country is a key buyer of industrial and precious metals.

Housing stocks, which were hit last week on fears about deteriorating conditions in the sector, advanced. Barratt Developments PLC rose 3.2%, Persimmon PLC rose 2.7% and Taylor Wimpey PLC gained 2.6%.

Among decliners, Dixons Carphone PLC fell 2.3% following a ratings downgrade of the electronic retailers to equal weight at Barclays. Barclays foresees pressure on big-ticket household items such as TVs and white goods during the second half of this year and into fiscal 2017 leading to a drag on Dixon’s earnings.

Source: MarketWatch