FTSE 100 gains ground as commodity shares advance

By Carla Mozee, MarketWatch

AFP/Getty Images

Mining stocks are rising Wednesday. Here, workers pack copper plates in Chile.

U.K. stocks rose Wednesday, as gains for mining and oil and gas shares helped London’s blue-chip benchmark eat into a loss it suffered in the prior session.

How markets are performing

The FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +0.36% rose 0.3% to 7,710.66, with the basic materials group leading advancers while telecom, consumer goods and utility shares lost ground. The benchmark on Tuesday lost 0.7%.

The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0415% rose to $1.3412, up from $1.3395 late Tuesday in New York.

What’s driving markets

Advances in prices for oil and metals guided gains for mining and energy companies, which combined make up a roughly 26% weighting on the FTSE 100, according to FactSet data. Oil prices   extended gains made Tuesday, spurred by reports that Venezuela may not deliver some of its contracted crude oil exports.

Meanwhile, dollar-denominated prices for most metals including copper  and palladium  moved higher as the dollar /zigman2/quotes/210598269/delayed DXY -0.08%  pulled lower. The rise in metals prices paved the way for higher prices for mining stocks. The dollar fell against the euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.0373%  after European Central Bank officials on Wednesday indicated that policy makers at the bank’s June 14 meeting will start discussing when it’s appropriate to end its massive bond-buying program.

The FTSE 100 managed to hold gains even as the pound continued to step higher in the wake of Tuesday’s better-than-expected data on the British services sector. Pound strength can hurt the FTSE 100 as revenue made overseas by multinational companies is reduced when those sales are translated back into sterling.

Stock movers

Smurfit Kappa Group PLC /zigman2/quotes/208768615/delayed IE:SK3 -1.73%  topped the FTSE 100 by rising 3.1%, heading for its biggest gain since early March. The advance came after International Paper Co. /zigman2/quotes/200533549/composite IP -0.64%  late Tuesday cited lack of engagement by Smurfit Kappa’s board and management for its decision to drop its proposed 8.9 billion-euro ($10.4 billion) offer for the Irish paper and packaging company.

BHP Billiton PLC shares   /zigman2/quotes/208108397/composite BHP +1.20%  rose 1.5%, with the mining heavyweight landing the first bids for its U.S. shale assets. Those bids value the portfolio at $7 billion to $9 billion, Bloomberg reported late Tuesday .

Checking other mining stocks, shares of Anglo American PLC /zigman2/quotes/201381512/delayed UK:AAL +1.04%  gained 2.2% and Glencore PLC /zigman2/quotes/201400686/delayed UK:GLEN +0.90%   /zigman2/quotes/209462106/composite GLCNF +1.84%  rose 1.1%.

WH Smith PLC /zigman2/quotes/201823422/delayed UK:SMWH +0.15% climbed 5.7% as the newspapers- and bookseller said its sales rose 4% in the 13 weeks to June 2, aided by growth at stores at transportation hubs such as train stations and airports.

Shares of oil major Royal Dutch Shell PLC   were up 0.4% and those of rival BP PLC   /zigman2/quotes/207305210/composite BP +8.35%  picked up 0.3%.

/zigman2/quotes/210598409/delayed

Add to watchlist UK:UKX

FTSE 100 Index

UK : FTSE UK

7,864.71

+28.00 +0.36%

Volume: 613,245

Feb. 7, 2023 4:51p

/zigman2/quotes/210561263/realtime/sampled

Add to watchlist GBPUSD

British Pound

US : Tullett Prebon

1.2052

+0.0005 +0.0415%

Volume: 0.0000

Feb. 7, 2023 10:06p

/zigman2/quotes/210598269/delayed

Add to watchlist DXY

U.S. Dollar Index (DXY)

US : U.S.: ICE Futures U.S.

103.34

-0.09 -0.08%

Volume: 0.00

Feb. 7, 2023 9:56p

/zigman2/quotes/210561242/realtime/sampled

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Euro

US : Tullett Prebon

1.0734

+0.0004 +0.0373%

Volume: 0.0000

Feb. 7, 2023 10:06p

/zigman2/quotes/208768615/delayed

Add to watchlist IE:SK3

Smurfit Kappa Group PLC

IE : Ireland: Dublin

€ 39.14

-0.69 -1.73%

Volume: 582,469

Feb. 7, 2023 4:32p

P/E Ratio

10.77

Dividend Yield

3.26%

Market Cap

€10.24 billion

Rev. per Employee

€246,104

/zigman2/quotes/200533549/composite

Add to watchlist IP

International Paper Co.

US : U.S.: NYSE

$ 40.28

-0.26 -0.64%

Volume: 2.55M

Feb. 7, 2023 4:03p

P/E Ratio

9.91

Dividend Yield

4.59%

Market Cap

$14.42 billion

Rev. per Employee

$682,613

/zigman2/quotes/208108397/composite

Add to watchlist BHP

BHP Group Ltd. ADR

US : U.S.: NYSE

$ 66.81

+0.79 +1.20%

Volume: 3.12M

Feb. 7, 2023 4:00p

P/E Ratio

7.41

Dividend Yield

9.71%

Market Cap

$167.50 billion

Rev. per Employee

N/A

/zigman2/quotes/201381512/delayed

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Anglo American PLC

UK : U.K.: London

3,387.00 p

+35.00 +1.04%

Volume: 1.97M

Feb. 7, 2023 4:35p

P/E Ratio

7.87

Dividend Yield

5.85%

Market Cap

£44.84 billion

Rev. per Employee

£446,346

/zigman2/quotes/201400686/delayed

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Glencore PLC

UK : U.K.: London

550.80 p

+4.90 +0.90%

Volume: 33.02M

Feb. 7, 2023 4:35p

P/E Ratio

6.06

Dividend Yield

3.93%

Market Cap

£69.34 billion

Rev. per Employee

£1.36M

/zigman2/quotes/209462106/composite

Add to watchlist GLCNF

Glencore PLC

US : U.S.: OTC

$ 6.65

+0.12 +1.84%

Volume: 9,151

Feb. 7, 2023 3:35p

P/E Ratio

5.58

Dividend Yield

3.91%

Market Cap

$83.29 billion

Rev. per Employee

$1.81M

/zigman2/quotes/201823422/delayed

Add to watchlist UK:SMWH

WH Smith PLC

UK : U.K.: London

1,667.00 p

+2.50 +0.15%

Volume: 126,279

Feb. 7, 2023 4:35p

P/E Ratio

46.81

Dividend Yield

0.55%

Market Cap

£2.17 billion

Rev. per Employee

£94,346

/zigman2/quotes/207305210/composite

Add to watchlist BP

BP PLC ADR

US : U.S.: NYSE

$ 37.75

+2.91 +8.35%

Volume: 25.21M

Feb. 7, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

3.59%

Market Cap

$103.43 billion

Rev. per Employee

N/A