“The commodities market continues to be on fire with a near-8% rally in iron ore and a 2.6% jump in the price of copper setting the tone for what could be an interesting week on the markets,” says AJ Bell investment director Russ Mould.
“Commodities are being driven by stronger demand as the global economy recovers from the pandemic and supplies are getting tighter.
“Given its heavy weighting towards natural resources, the FTSE 100 benefited from the latest surge in commodity prices, with seven of the index’s top 10 risers being mining companies, led by Rio Tinto and BHP.
“The index traded 0.1% higher at 7,138, with the miners more than offsetting weakness from consumer goods and tobacco companies – effectively showing that investors today were ‘risk-on’ and happy to bid up higher risk stocks and less interested in more defensive names like Unilever and British American Tobacco which tend to see earnings tick over in both good and bad economic conditions.”
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