U.K. stocks surged Tuesday, with gains for mining shares and oil heavyweight Royal Dutch Shell PLC helping the market’s benchmark moved toward a third consecutive win.
The FTSE 100 picked up 0.6% to 6,312.58, as all but the utilities sector gained ground.
U.K. and European equity investors were getting their first chance to react to U.S. Federal Reserve Chairwoman Janet Yellen’s speech on Monday, and what it implied about the timing of the central bank’s next interest rate increase.
Yellen did address “concerns she had over the impact of a potential Brexit, and this would appear to rule out June and possibly July,” said Richard Perry, market analyst at Hantec Markets, in a note. “Equities have been supported by Yellen’s comments, which have helped to settle nerves a bit.”
Two new opinion polls on Tuesday showed a slight lead for in voter support for “remain” in the June 23 referendum on whether the U.K. should leave or stay in the European Union. The pound GBPUSD, +1.0873% was buying $1.4496, compared with $1.4466 on Monday, during which it traded a roughly at three-week low. That decline came after a clutch of polls indicated a swing into the lead for the “leave” camp.
Miner movers: The FTSE 100 on Monday climbed 1% to close at a nearly six-week high, aided in part by gains for mining shares as a softening dollar helped metals prices gain ground.
Mining shares continued to push higher Tuesday, with platinum producer Anglo American PLC gaining 3% and copper miner Antofagasta PLC higher by 1.6%. Glencore PLC added 2.2%
Oil beaters: Shares of Royal Dutch Shell PLC were near the top of the index, moving up 2.2% after the oil major raised its target for savings stemming from its purchase of BG Group.
Stock in rival oil producer BP PLC was up 1.2%, outperforming a slip in oil prices CLN6, +0.58% LCOQ6, +0.69% .
Source: MarketWatch
