Final hours! Save up to 55% OFF InvestingProCLAIM SALE

FTSE 100 rises on travel and mining boost; Bunzl hits record high

Published 08/27/2024, 03:46 AM
Updated 08/27/2024, 11:55 AM
© Reuters. FILE PHOTO: Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo
UK100
-
HG
-
FTMC
-
BZLFY
-

By Khushi Singh and Ankika Biswas

(Reuters) -UK's benchmark FTSE 100 stock index ended higher on Tuesday, led by gains in travel and mining shares, while Bunzl (OTC:BZLFY) hit a record high after the business supplies distributor forecast a strong annual profit.

The blue-chip FTSE 100 index was up 0.2%, marking its fourth straight day of gains while the domestically-focused mid-cap FTSE 250 was down 0.1%.

The travel and leisure index was at a four-week high with a 1.3% surge as airline Easyjet and Wizz Air gained 6.9% and 5.3% respectively, after European rival Ryanair upgraded its summer air fare outlook.

Industrial metal miners edged up 0.7% as buying triggered by expectations of an imminent interest rate cut in the United States, a weaker dollar and signs of improving demand in top consumer China boosted copper prices. [MET/L]

Bunzl jumped 8% to the top of the FTSE 100, after raising its annual adjusted operating profit forecast, helping the general industrials index touch a record high.

On the flip side, the homebuilders index was the biggest sectoral decliner with a 4.2% fall. Industry heavyweights Barratt Developments (LON:BDEV), Berkeley Group (OTC:BKGFY), Persimmon (LON:PSN) and Taylor Wimpey (LON:TW) were down between 3.1% and 6.6%.

On the data front, British retailers reported a third straight month of falling sales in August and they expect another decline in September, prompting them to lower their hiring and investment plans.

British shop prices also fell in annual terms this month for the first time since October 2021.

© Reuters. FILE PHOTO: Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo

This comes on the heels of the Bank of England cutting interest rates from 16-year highs earlier this month, with investors expecting at least one more quarter-point cut by year-end, as per LSEG data.

Investors also kept an eye out for tensions in the Middle East, while awaiting a crucial inflation report from the United States, with a dry events calendar at home.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.