LONDON: London’s FTSE 100 edged lower on Monday as heavyweight export-oriented companies slipped on a stronger pound, while a rally in shares of IMI helped the mid-cap index outperform the blue-chip index.
The FTSE 100 fell 0.1% as large dollar-earning consumer staples companies such as Diageo, British American Tobacco, and Unilever dropped after the pound strengthened.
However, the losses were limited as miners added 1.4% after copper prices hit their highest in over 10 years.
Aero and defence stocks also rose, with Rolls Royce jumping 3.7% after it said on Friday it was in constructive talks with Spain over the sale of its Spanish unit ITP Aero.
The domestically focussed mid-cap FTSE 250 index added 0.3%. Engineering firm IMI jumped 7% to the top of index after it raised its annual profit outlook.
“With a data calendar as juicy as this week, Monday morning COVID-19 nerves are likely to be quickly forgotten,” said Jeffery Halley, senior market analyst at OANDA.
The FTSE 100 has gained 7.3% year-to-date as encouraging economic data on the back of speedy COVID-19 vaccinations and constant policy support from the government lifted optimism about a stronger economic recovery.
Goldman Sachs expects Britain to grow by a “striking” 7.8% this year, more than the United States following a nearly 10% slump last year as it was hit by longer coronavirus lockdowns than many of its peers.
Global education group Pearson rose 2.2 after posting a 5% increase in underlying revenue growth in the first quarter, helped by strong demand for online learning courses.
Food ingredients maker Tate & Lyle added 6.2% after saying it was exploring the sale of a controlling stake in its commercial sweeteners unit and separate it from its food and beverage solutions business.
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