FTSE 100 and Midcap Gains: A Pre-Christmas Market Rally
The UK's FTSE 100 index rose amid low trading volumes ahead of Christmas, driven by gains in the chemicals and energy sectors. Homebuilder Vistry issued its third profit warning, causing its shares to fall sharply. The British economy is facing challenges due to budget announcements and policy rate expectations.
The UK's FTSE 100 index climbed for a second consecutive day on Tuesday, with a 0.4% gain, anticipating its largest one-day rise in more than two weeks. This uptick occurred amid low trading volumes as the Christmas break approaches.
Driving the gains were the chemicals sector, which rose by 1.3%, and industrial metal miners, which tracked a 0.7% increase in copper prices, buoyed by hopes for fiscal stimulus in China. The energy sector mirrored these gains, also rising by 0.7% amid a slight increase in oil prices.
However, homebuilder Vistry suffered a 16.3% plunge after issuing its third profit warning since October, adversely affecting the household goods and home construction index. Meanwhile, Persimmon fell 2.4%, and the broader UK economy faces headwinds following recent tax increase announcements and cautious monetary policy signals.
(With inputs from agencies.)
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