NEW YORK: U.K. stocks clung to thin gains Thursday, with miners outperforming the benchmark FTSE 100 after the release of Chinese manufacturing data. Meanwhile, the pound climbed following a strong monthly reading for British retail sales.
Sterling: The pound GBPUSD, +0.9397% leapt to $1.5656 from $1.5537 late Wednesday, after U.K. retail sales rose by a stronger-than-anticipated pace in April. Volume sold by stores increased 1.2%, outstripping expectations of a 0.3% rise in a FactSet survey of analysts.
The pound had already been higher against the greenback after minutes released late Wednesday from the Federal Reserve’s April meeting showed only a “few” policy makers thought the U.S. economy would show enough strength to justify an interest-rate increase in June.
“Fragility in the U.S. economy is being frequently exposed,” said Jameel Ahmad, chief market analyst at FXTM, in emailed comments. When the Fed finally decides to begin increasing rates for first time since 2006, the raising cycle “is going to be painfully slow, which will test the patience of traders and make the dollar continually vulnerable to profit-taking.”
Stocks: The FTSE 100 UKX, -0.01% was up 4 points at 7,010.22, holding to higher ground as the basic materials group rose. There, precious metal miner Fresnillo PLC FRES, +1.84% rose 1.5%, Rio Tinto PLC RIO, +1.01% RIO, +0.86% RIO, +1.55% advanced 1.4% and BHP Billiton PLC BLT, +1.22% BHP, +0.04% BHP, +1.46% tacked on 1.6%. Antofagasta PLC ANTO, +0.77% moved up 1.2%.
