Boom! Periods when the FTSE 100 rises in the region of 1% in a day should be celebrated given how this year has been so gloomy for investors. Today, the fireworks are most definitely lighting up the sky and the UK market is regaining its mojo.
Russ Mould, investment director at AJ Bell, said: “Miners revved their engines yesterday following the G7 $600 billion infrastructure plan and were striking more gold today as investors continue to flock to the sector.
“Perhaps helping the cause was news that China would reduce the Covid quarantine period for visitors from overseas, perhaps a sign that the Asian superpower’s extra tough pandemic measures might be relaxed going forward. That would help to alleviate fears that commodities demand would be weaker from China if it shut up shop every time a new Covid wave came.
“Rio Tinto jumped nearly 4%, Anglo American and Glencore rose by 3% or more, and even oil producers BP and Shell were in vogue.
“Utilities were out of fashion following a broker downgrade on Severn Trent. JPMorgan moved to an ‘underweight’ position on the stock, triggering a 4.2% decline in the share price. United Utilities fell in sympathy.”
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