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May 14, 2021, 12:22 p.m. EDT

Miners drag on FTSE 100 as copper and iron prices fall, but London stocks continue to rebound

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By Jack Denton

Stocks in London climbed higher on Friday, rebounding from a selloff in the U.S. that spread across European markets this week, though shares in a number of major mining companies dragged on gains.

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.47% , the index of London’s top stocks by market capitalization, rose 1.15%, with most of its constituents notching gains.

But shares in mining giants Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +2.85% , BHP /zigman2/quotes/203323256/delayed UK:BHP +2.15% , and Antofagasta /zigman2/quotes/200173667/delayed UK:ANTO +6.88% , which are all major producers of copper or iron ore, stood out as fallers in London, as there was a decline in the prices of those commodities. Copper futures /zigman2/quotes/210054311/delayed HG00 +2.39% were down 1% while iron ore futures fell 1.5%.

Also read: Early Tesla backer and top fund manager attacks Warren Buffett’s strategy. Here’s his investing advice.

A decline in commodities prices — including benchmark Brent crude, which fell from near $70 a barrel on Wednesday to below $67 on Thursday, with the price of oil now pushing above $68 — came as stocks rallied. Equities across Europe were rebounding from days of declines from the beginning of the week, which were largely driven by U.S. inflation fears.

Wall Street enjoyed a strong rally on Thursday, reversing a near 4% fall on the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.95% index over the week, with stocks in London playing catch-up on Friday.

“It has been a turbulent week as the scepter of inflation once again spooked investors however it looks like last night’s Wall Street rally is providing a port in a storm for the FTSE 100 as it enjoyed a solid bounce on Friday morning,” said Russ Mould, an analyst at AJ Bell.

Plus: Chip maker Alphawave tumbles on London debut after raising $1.2 billion in IPO

The analyst highlighted the risk from the COVID-19 situation in India, as the U.K. looks to further open up after months of lockdowns and ease travel restrictions.

“Keeping cases of the so-called Indian variant of COVID-19 under control is something the U.K. is facing up to and it is prompting some concern that the next phase of reopening might be delayed, or localized restrictions introduced. This uncertainty could hit the hospitality and travel sectors,” Mould warned.

However, travel and tourism stocks remained resilient on Friday, with shares in airline IAG /zigman2/quotes/208070069/delayed UK:IAG +1.87% — which owns British Airways, Aer Lingus, and Iberia — rising, along with low-cost carriers easyJet /zigman2/quotes/202825892/delayed UK:EZJ +0.88% , Ryanair /zigman2/quotes/202851567/delayed UK:RYA +1.02% , and Wizz Air /zigman2/quotes/210449062/delayed UK:WIZZ +1.37% . Hotel operators Whitbread /zigman2/quotes/207954631/delayed UK:WTB +0.97% and InterContinental Hotels Group /zigman2/quotes/202865596/delayed UK:IHG +0.45% also gained.

Shares in U.K. enterprise software group Sage /zigman2/quotes/204528931/delayed UK:SGE +0.21% rose 3.8% — the biggest gainer on the FTSE 100 — after posting half-year results with earnings per share ahead of analyst expectations. The group also guided that its margins would trend upward beyond 2021.

Shares in Sanne /zigman2/quotes/204110628/delayed UK:SNN 0.00% , a U.K. asset management services group and constituent of the midcap FTSE 250 /zigman2/quotes/210598417/delayed UK:MCX +0.73% index, soared 21% higher, after its board rejected a £1.35 billion ($1.9 billion) buyout proposal from private-equity group Cinven.

/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,083.37
+102.39 +1.47%
Volume: 586,994
Sept. 22, 2021 4:59p
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/zigman2/quotes/208934945/delayed
UK : U.K.: London
4,841.00 p
+134.00 +2.85%
Volume: 3.34M
Sept. 22, 2021 4:35p
P/E Ratio
5.71
Dividend Yield
12.93%
Market Cap
£77.50 billion
Rev. per Employee
£732,787
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/zigman2/quotes/203323256/delayed
UK : U.K.: London
1,891.60 p
+39.80 +2.15%
Volume: 6.95M
Sept. 22, 2021 4:35p
P/E Ratio
11.53
Dividend Yield
11.49%
Market Cap
£98.07 billion
Rev. per Employee
N/A
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/zigman2/quotes/200173667/delayed
UK : U.K.: London
1,420.50 p
+91.50 +6.88%
Volume: 3.56M
Sept. 22, 2021 4:35p
P/E Ratio
18.48
Dividend Yield
3.72%
Market Cap
£13.10 billion
Rev. per Employee
£172,054
loading...
/zigman2/quotes/210054311/delayed
US : U.S.: Nymex
$ 4.22
+0.10 +2.39%
Volume: 66,758
Sept. 22, 2021 4:59p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,395.64
+41.45 +0.95%
Volume: 2.00B
Sept. 22, 2021 5:05p
loading...
/zigman2/quotes/208070069/delayed
UK : U.K.: London
174.50 p
+3.20 +1.87%
Volume: 24.21M
Sept. 22, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£8.50 billion
Rev. per Employee
£120,743
loading...
/zigman2/quotes/202825892/delayed
UK : U.K.: London
661.20 p
+5.80 +0.88%
Volume: 8.92M
Sept. 22, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£4.94 billion
Rev. per Employee
£214,929
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/zigman2/quotes/202851567/delayed
UK : U.K.: London
16.77
+0.17 +1.02%
Volume: 117,365
Sept. 22, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€18.61 billion
Rev. per Employee
€108,937
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/zigman2/quotes/210449062/delayed
UK : U.K.: London
5,192.00 p
+70.00 +1.37%
Volume: 154,732
Sept. 22, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£5.28 billion
Rev. per Employee
£166,524
loading...
/zigman2/quotes/207954631/delayed
UK : U.K.: London
3,345.00 p
+32.00 +0.97%
Volume: 331,709
Sept. 22, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£6.68 billion
Rev. per Employee
£20,742
loading...
/zigman2/quotes/202865596/delayed
UK : U.K.: London
4,720.00 p
+21.00 +0.45%
Volume: 599,286
Sept. 22, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£8.58 billion
Rev. per Employee
£145,486
loading...
/zigman2/quotes/204528931/delayed
UK : U.K.: London
751.20 p
+1.60 +0.21%
Volume: 1.19M
Sept. 22, 2021 4:35p
P/E Ratio
35.72
Dividend Yield
2.31%
Market Cap
£7.84 billion
Rev. per Employee
£163,390
loading...
/zigman2/quotes/204110628/delayed
UK : U.K.: London
904.00 p
0.00 0.00%
Volume: 752,123
Sept. 22, 2021 4:35p
P/E Ratio
100.11
Dividend Yield
1.10%
Market Cap
£1.46 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210598417/delayed
UK : FTSE UK
23,784.54
+173.15 +0.73%
Volume: 218,375
Sept. 22, 2021 4:59p
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