Commodities Rally in London; Copper, Oil Up

123jump.com Staff
01 Jun, 2009
New York City

UK stocks traded higher on a rise in copper, gold and crude oil prices. A global rally sparked by the third monthly increase in manufacturing in China. Copper reached $5,000 a ton, six-month high. UK home prices stabilized in May.

[R]6:00 PM London, 1:00 PM New York – UK stocks traded higher on a rise in copper, gold and crude oil prices. A global rally sparked by the third monthly increase in manufacturing in China.[/R]

A global rally in stocks was sparked by the third successive monthly expansion in China. The manufacturing in May increased on rising new orders and exports. The news set-off a rally in Chinese and Asian markets and lifted stocks in UK and Europe.

In London FTSE 100 Index closed higher 88.25 or 2.00% to 4,506.19.

Mining stocks led the advance with a rise in copper, zinc and other base and precious metal prices. Copper reached $5,000 a ton, crude oil hovered near $68 a barrel and gold and silver trade at six-month high.

Home prices did not decline in May from April and stayed at £155,600. Home prices did not decline from the previous month for the first time in twenty months according to a report by Hometrack.

Gainers & Losers

Copper gained for the sixth day in a row and crude oil closed higher in London trading.

Xstrata increased 10.5% to 756 pence, Vedanta Resources Plc increased 9% to 1,724 pence and Ferrexpo Plc closed up 8.6% to 176 pence. Kazakhmys Plc added 5.8% to 731 pence.

Rio Tinto added 6.5% to 2,982 pence and BHP Billiton increased 5.3% to 1,554 pence.

Royal Dutch Shell Plc increased 2.3% to 1,714 pence and BP Plc increased 2.7% to 524 pence.

Lloyds Banking Group added 6.6% to 72.50 pence after the Wall Street Journal reported that the bank is seeking a sale of its asset management unit named Insight Investment.

Catlin Group dropped 5.6% to 335 pence.

Centrica Plc decreased 3.5% to 237.50 pence after the rating agency S&P lowered its long term debt rating.

Lookers increased 2.9% to 53.50 pence after it reported full-year profit declined to £14m from £24.5m a year ago on revenues increase of 5.7% to £1.7 billion. The company has arranged bank facility of £210 million maturing in 2012.

Specialist printing company printing.com reported full year profit declined 15% to £2.06 million and revenues increased 7.3% to £14.5 million.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 86 increased, 14 declined and 2 were unchanged.

Centrica Plc decliners in the FTSE 100 index with a loss of 3.46% followed by losses in Compass Group Plc, of 2.24%, in Amlin Plc, 2.00%, in BAE Systems Plc of 1.98% and in Drax Group Plc of 1.84%.

Xstrata Plc led gainers in the FTSE 100 index with a rise of 10.53% followed by increase in Vedanta Resources Plc of 9.04%, in Liberty International Plc of 8.19%, in Legal & General Group Plc of 7.95%, in Anglo American Plc of 7.48%.

Europe Markets Review

In London FTSE 100 Index closed higher 88.25 or 2.00% to 4,506.19, in Paris CAC 40 Index increased 101.84 or 3.11% to close at 3,379.49 and in Frankfurt DAX index higher 201.74 or 4.08% to close at 5,142.56. In Zurich trading SMI decreased 0.85 or 0.02% to close at 5,349.74.