The FTSE 100 experienced a slight rise, driven by gains in metal mining stocks following positive economic indicators from China.
Base metal mining companies saw an increase of up to 1% after encouraging data on industrial output and retail sales from China, the leading consumer of metals, which contributed to a 0.1% uplift in the resource-intensive FTSE 100.
China’s industrial production, the world’s second-largest economy, grew by 7% year-on-year in February, surpassing analysts’ predictions. Investment in infrastructure and equipment, known as fixed-asset investments, climbed by 4.2%.
The upward trend in London’s main stock index was further supported by Reckitt Benckiser, which surged by as much as 5.9% following a previous 14% drop on Friday. This change occurred after the consumer goods giant faced a legal setback in the US, where its baby formula was alleged to have contributed to the death of a premature infant.
Conversely, Haleon was among the decliners, dropping up to 3.2% after Pfizer, its principal shareholder, announced plans to reduce its stake in the toothpaste company from 32% to approximately 24%, equating to a sale of shares worth around £2 billion.
The mid-cap FTSE 250 dipped slightly by 0.2%, influenced by an 11% decrease in Marshalls. The landscaping and roofing product supplier indicated a potential revenue drop for 2024, citing a slower-than-expected recovery.
Investors are now turning their attention to the upcoming UK inflation data set for release on Wednesday, along with interest rate decisions from the Bank of Japan, the US Federal Reserve, and the Bank of England.
The Bank of England is largely anticipated to maintain the current interest rates in its forthcoming meeting, with the market’s focus shifting towards determining when the first rate reduction might occur.
