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FTSE 100 boosted by resource stocks

by LLB Editor
27th Jun 23 9:30 am

A combination of geopolitical tensions in Russia stoking supply fears and pledges of state support for the Chinese economy have helped lift commodities and boosted the resource-heavy FTSE 100 on Tuesday.

AJ Bell investment director Russ Mould said: “The big oil and mining stocks were joined by the banks in helping to lift the index 0.5% in early trading.

“Beijing’s number two, Premier Li Qiang, pointed to higher growth in the second quarter than the first and said the country would bring through policies to boost domestic demand.

“The pace of China’s Covid recovery has disappointed many but probably reflects the different nature of its pandemic experience.

“Households did not benefit from the same levels of support seen in the West and therefore hopes for a wave of ‘revenge spending’ in China were probably always going to be forlorn with an economic rebound likely to be more gradual.

“Aston Martin Lagonda continues to point to acceleration in annual profit to £500 million by 2024/2025 – though whether this would be enough to earn executive chair Lawrence Stroll a knighthood, which he reportedly believes he’s entitled to, is still up in the air. It would certainly earn him the gratitude of long-suffering shareholders in the business.”

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