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April 7, 2021, 10:41 a.m. EDT

FTSE 100 climbs as falling yields weigh on sterling

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By Barbara Kollmeyer

London stocks surged on Wednesday, outpacing European rivals as the pound fell and the food and travel industry rose on optimism over lockdowns ending.

The FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +1.19% climbed 0.9%, while the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.73% backed away from a record high, dropping 0.2%. Driving U.K. gains was a 0.5% drop for the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.0240% , which fell to $1.37530, a level not seen since early last week. A weak pound can help boost the FTSE, which is home to many multinational companies that derive revenue overseas.

“The new quarter has turned the tables in the currency market, as the rally in bond yields that turbocharged the dollar along with sterling last quarter seems to have run out of fuel for now, breathing some life back into the devastated euro and yen,” said Marios Hadjikyriacos, investment analyst at XM, in a note to clients.

“Treasury yields have cooled down in recent sessions, diminishing the dollar’s rate advantage,” he added. The yield on the 10-year note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -2.18% inched up to 1.66%, but well off a level of 1.77% seen late March. The yield on the 10-year U.K. gilt /zigman2/quotes/211347177/realtime BX:TMBMKGB-10Y 0.00% has cooled to 0.789% from 0.847% in late March and 0.877% in mid March.

Elsewhere, shares of banks and mining stocks were helping to underpin the index, with HSBC /zigman2/quotes/208272822/composite HSBC +0.75% /zigman2/quotes/203901799/delayed UK:HSBA +1.00% shares up 1% and Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +1.91% /zigman2/quotes/202627887/composite RIO +2.37% up 1.4%.

Oil companies were also in focus, with shares of Royal Dutch Shell flat. The energy giant warned of a $200 million hit for first-quarter adjusted earnings from a Texas storm, but would turn a first profit for its upstream oil and gas unit since the COVID-19 pandemic.

Read: Why Shell’s trading update still disappointed some analysts

Shares of rival BP /zigman2/quotes/202286639/delayed UK:BP +1.09% rose 2% after gains on Tuesday, as the oil group said it would hit its net debt target almost a year earlier than expected .

Also higher were shares of cruise operator Carnival /zigman2/quotes/210414141/delayed UK:CCL -2.96% , which rose 5%, alongside gains for U.S. shares of Carnival Corp. /zigman2/quotes/202325446/composite CCL -3.31% and Norwegian Cruise Line /zigman2/quotes/204183397/composite NCLH -4.08% . A spokeswoman for the Centers for Disease Control and Prevention, Jade Fulce, told Bloomberg on Tuesday that cruises could resume by midsummer on a restricted basis. Carnival Corp.’s Cruise Line on Tuesday threatened to take its ships to non-U.S. ports .

Shares of pub operator Mitchells & Butler /zigman2/quotes/209008939/delayed UK:MAB -1.57% climbed 3%.

Elsewhere, shares in Deliveroo  /zigman2/quotes/225812915/delayed UK:ROO +3.40% rose almost 3% on Wednesday — the first day an estimated 70,000 individual investors were allowed to trade the Amazon /zigman2/quotes/210331248/composite AMZN +0.25% -backed company they bought during the food delivery company’s poor stock market debut last week.

/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,389.98
+87.24 +1.19%
Volume: 722,321
May 20, 2022 4:56p
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/zigman2/quotes/210599654/delayed
XX : STOXX
431.10
+3.11 +0.73%
Volume: 0.00
May 20, 2022 11:03p
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/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.2489
-0.0003 -0.0240%
Volume: 0.0000
May 20, 2022 4:59p
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
2.79
-0.06 -2.18%
Volume: 0.00
May 20, 2022 4:59p
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/zigman2/quotes/211347177/realtime
add Add to watchlist BX:TMBMKGB-10Y
BX : Tullett Prebon
1.89
0.00 0.00%
Volume: 0.00
May 20, 2022 5:00p
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/zigman2/quotes/208272822/composite
US : U.S.: NYSE
$ 30.75
+0.23 +0.75%
Volume: 2.59M
May 20, 2022 4:00p
P/E Ratio
10.91
Dividend Yield
4.03%
Market Cap
$123.02 billion
Rev. per Employee
$273,805
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/zigman2/quotes/203901799/delayed
UK : U.K.: London
490.75 p
+4.85 +1.00%
Volume: 23.70M
May 20, 2022 4:35p
P/E Ratio
11.93
Dividend Yield
4.09%
Market Cap
£98.68 billion
Rev. per Employee
£200,552
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/zigman2/quotes/208934945/delayed
UK : U.K.: London
5,449.00 p
+102.00 +1.91%
Volume: 2.34M
May 20, 2022 4:35p
P/E Ratio
5.80
Dividend Yield
13.04%
Market Cap
£90.68 billion
Rev. per Employee
£935,616
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/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 69.54
+1.61 +2.37%
Volume: 3.18M
May 20, 2022 4:00p
P/E Ratio
5.35
Dividend Yield
11.39%
Market Cap
$113.05 billion
Rev. per Employee
$1.29M
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
417.20 p
+4.50 +1.09%
Volume: 32.73M
May 20, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
4.20%
Market Cap
£80.56 billion
Rev. per Employee
£1.74M
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/zigman2/quotes/210414141/delayed
UK : U.K.: London
976.20 p
-29.80 -2.96%
Volume: 832,858
May 20, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£11.90 billion
Rev. per Employee
N/A
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/zigman2/quotes/202325446/composite
US : U.S.: NYSE
$ 13.13
-0.45 -3.31%
Volume: 45.62M
May 20, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$14.84 billion
Rev. per Employee
N/A
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/zigman2/quotes/204183397/composite
US : U.S.: NYSE
$ 15.30
-0.65 -4.08%
Volume: 27.11M
May 20, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.41 billion
Rev. per Employee
$33,626
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/zigman2/quotes/209008939/delayed
UK : U.K.: London
200.00 p
-3.20 -1.57%
Volume: 595,096
May 20, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£1.19 billion
Rev. per Employee
£24,565
loading...
/zigman2/quotes/225812915/delayed
UK : U.K.: London
£ 93.00
+3.06 +3.40%
Volume: 2.93M
May 20, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£1.73 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,151.82
+5.44 +0.25%
Volume: 4.98M
May 20, 2022 4:00p
P/E Ratio
51.89
Dividend Yield
N/A
Market Cap
$1094.67 billion
Rev. per Employee
$297,107
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