FTSE 100 rises as china stimulus hopes lift mining stocks

The FTSE 100 saw gains at the open, buoyed by a notable rise in mining stocks due to increasing hopes of substantial stimulus measures from China to stimulate demand.

The blue-chip FTSE 100 index responded positively, showing an increase, while the more domestically-focused FTSE 250 midcap index also saw a modest rise.

Mining companies focused on industrial metals experienced a surge of 0.4% as copper prices rallied on the back of optimistic expectations for Chinese stimulus. This upswing follows the release of data indicating a third consecutive monthly decline in China’s factory activity throughout June.

While the housing market faced headwinds, the sector showcased promise. Mortgage lender Nationwide reported the most significant annual drop in British house prices since 2009, covering the 12 months up to June. However, monthly data presented an unexpected small rise, offering a glimmer of hope.

In line with this positive trend, housing-related stocks, including real estate firms, real estate investment trusts, and homebuilders, recorded gains ranging from 0.7% to 0.9%.

Barratt Developments, the largest housebuilder in Britain, experienced a 0.6% increase in its stock price. The company also made headlines with its recent announcement of an agreement to sell 604 homes to Citra Living Properties, bringing in a substantial cash consideration of 168.4 million pounds ($212.57 million).