UK stocks recover as bond rally lifts risk sentiment
EWU•UK indexes recover as bonds rally
The UK's main stock indexes recovered on Thursday as a rally in global bonds ahead of a U.S. jobs report lifted risk sentiment, while firmer commodity prices provided additional support.
The blue-chip FTSE 100 index rose 0.1% to 10,767.57 points by 10:10 GMT, while the midcap FTSE 250 gained 0.1%, rebounding from a nearly one-month low.
Rates, commodities and sector moves
- Britain's 10-year gilt yields eased more than 29 basis points from an 18-year high of Wednesday, tracking a rally in global bonds and stocks ahead of U.S. non-farm payrolls data on Friday.
- The services sector in the UK grew for the second month in a row in August and confidence rose, a survey showed.
- Rate-sensitive banks rose 0.2%.
- Healthcare stocks advanced 0.9% higher, supported by weaker sterling, with AstraZeneca up 1.3%.
- Precious metal miners gained 0.9% as gold and silver prices rose.
Telecoms rise, Burberry falls, Hilton Food jumps
- Telecom stocks Airtel Africa and Vodafone rose between 3.3% and 3.8%, leading sectoral gains.
- Luxury retailer Burberry slipped 1.9%, as weak demand prospects weighed on the sector across Europe, sending the broader personal goods sector down 2.2%, leading sectoral losses.
- Hilton Food Group jumped 16.7%, among the top gainers in the mid-cap index after raising annual profit forecast.
