Mining sector drives big rally for FTSE 100 as gold and other metals surge

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Mining sector drives big rally for FTSE 100 as gold and other metals surge


U.K. stocks surged on Monday, buoyed by a rally for the mining sector as metals futures jumped.

The FTSE 100
UKX,
+2.62%

rose 2.6%, its best single day of gains since the 4.7% surge after U.S. drug company Pfizer first announced the effectiveness of its coronavirus vaccine.

Mining giant Rio Tinto
RIO,
+5.56%

had the largest upward pull on the FTSE 100, as miners including Polymetal International
POLY,
+6.74%
,
Fresnillo
FRES,
+9.30%
,
Glencore
GLEN,
+6.09%

and Anglo American
AAL,
+5.77%

all surged with commodity prices in demand. The dollar fell to its lowest level since April 2018, and there were big gains for gold
GCF21,
+1.93%
,
copper
HG00,
+2.46%
,
silver
SI00,
+4.20%

and platinum
PL00,
+3.31%
.

The gains for commodities came on hopes for the global economy. The U.K. on Monday become the first nation to inoculate with the vaccine made by drug company AstraZeneca
AZN,
+2.80%
,
which also posted strong gains.

U.S. stock futures
ES00,
+0.57%

also gained ground on the first trading day of 2021.

U.K. banks including Natwest Group
NWG,
-3.55%

and home builders such as Taylor Wimpey
TW,
-1.78%

slipped, a sign traders were less optimistic about companies more exposed to the U.K. economy than the global one.

Shares of U.K. gaming company Entain
ENT,
+26.60%

jumped 27% to 1,429 pence, after rejecting the proposed 1,383 pence per share bid from MGM Resorts
MGM,
+1.03%

that valued the company at £8.09 billion. Entain, the owner of brands including Ladbrokes, said the proposal significantly undervalues the company and its prospects. Entain also asked for “additional information in respect of the strategic rationale for a combination of the two companies.”



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