London-listed mining companies are leading gains in Britain’s markets on Tuesday, with four of the FTSE 100’s top listed miners in the five biggest winners so far. As of around 12.20 p.m. BST (7.20 a.m. ET) Rio Tinto, Glencore, Antofagasta, and Anglo American are all well higher, gaining thanks to a strong dollar, and a crumbling pound.
Glencore’s rise is of particular note, and follows on from an announcement on Monday that the miner had managed to secure a substantial deal to sell thermal coal to Japanese firm Tohoku Electric for almost $100 per tonne. As a result Glencore is more than 4% higher.
Markets InsiderBritish listed miners, which largely denominate their assets in dollars, and carry out the vast majority of their operations overseas, have enjoyed a huge rise since Britain voted to leave the EU in June, taking advantage of the pound’s crash against the dollar.
Overall, Britain’s stock market has gained a little so far on the day, with the FTSE up just more than 0.2%. Here’s the chart:
Markets Insider
Henry Croft, a research analyst at Accendo Markets, says in an email on Monday morning that European markets are being boosted “after a mostly positive Asian trading session, driven by further US Dollar strengthening as the chances of a US Fed hike in December reach their highest since before Brexit. Earnings releases will once again be the focus for markets as four FTSE 100 components report this morning, whilst across the pond the world’s most valuable company Apple reports how it fared in the third quarter.
“Earnings releases will once again be the focus for markets as four FTSE 100 components report this morning, whilst across the pond the world’s most valuable company Apple reports how it fared in the third quarter.”
Other FTSE 100 gainers on Tuesday include BT Group (up 3.5%) and telecoms giant Vodafone (up 1.7%).
At the other end of the table, Whitbread, which owns Costa Coffee and Premier Inn, is down almost 3.6% after worse than expected results out on Tuesday morning.
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