London Stock Exchange – Miners, energy stocks lift FTSE 100; Arrow Global soars on higher buyout offer | Money

LONDON, Feb 8 — London’s FTSE 100 snapped a three-day losing streak today as mining and energy stocks tracked strong gains in commodity prices, while Arrow Global surged after private equity firm TDR Capital raised its buyout offer for the asset manager.

The commodity-heavy FTSE 100 was up 0.5 per cent, with miners Anglo American, Rio Tinto and BHP Group as well as oil producers BP and Royal Dutch Shell being among the top boosts.

Financial firms were also among the biggest gainers in morning trading.

“The UK commodities are higher this morning, which is tied into the hopes that a US$1.9 trillion US stimulus package is going to passed without the help of Republicans. I think that is the underlying market driver,” said Connor Campbell, analyst at Spreadex.

The FTSE 100 has recovered nearly 33 per cent from its March 2020 lows, led by a raft of stimulus, but a surge in infections and widespread lockdowns recently have slowed economic growth. The index has also lagged its US and European peers, which are up 77 per cent and 52 per cent, respectively.

All eyes this week will be on British GDP and manufacturing data for clues about the pace of the economic rebound. Global stock markets are also counting on a US$1.9 trillion US Covid-19 aid package to be passed as soon as this month.

Shares of British retailers were subdued in early deals as a report said the government was planning to tax retailers and tech companies whose profits soared during the Covid-19 pandemic.

The mid-cap FTSE 250 index fell 0.2 per cent, led lower by technology-related firms.

Arrow Global Group surged 26.7 per cent after TDR Capital made a fourth offer for the European investor and asset manager at a price of 305 pence per share.

Rolls-Royce shed 1.4 per cent after the aero-engine maker said it was proposing a two-week operational shutdown of its civil aerospace unit over the summer. — Reuters