FTSE 100 saw gains on Monday, contrasting with declines in major European indices, as markets responded to a rate cut by the People’s Bank of China. In early trade, the FTSE 100 rose by 0.2%, primarily driven by mining companies like Fresnillo, Glencore, and Antofagasta. These firms benefitted from the news of the rate cut, as increased business activity in China often boosts the stock prices of raw material sellers.
The People’s Bank of China implemented the anticipated rate reductions, lowering both its two-year and five-year rates by 25 basis points. The two-year rate now stands at 3.1%, while the five-year rate has been adjusted to 3.6%.
In contrast, Germany’s DAX index dipped by 0.2%, and France’s CAC index saw a slight decline of 0.1%. However, the pan-European STOXX 600 managed a modest increase of 0.1%.
Meanwhile, gold prices climbed by 0.5%, reaching $2,743 per troy ounce in early trading, extending gains to new record levels.
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