In a quiet day for news from companies in the FTSE 350, the main issue occupying investors’ minds comes from China.
As the trade with the US intensifies, the world’s most populous country has pledged more support for its weakening economy, with plans to invest regional development and boost spending on infrastructure projects.
That typically requires more steel, which requires more iron ore, and has therefore seen a surge in iron ore futures, i.e. the price agreed now for iron ore delivered months down the line.
And that has contributed to the UK’s leading FTSE 100 index to rise 0.55% to 7,246.81, mostly led by miners.
Two of the big diversified miners who dig several different metals out of the ground, Rio Tinto (RIO) and Glencore (GLEN), both opened around 1% higher at £42 and 240p respectively.
This was thanks to both the iron ore surge and Indonesia speeding up its plan to ban nickel exports, a move which constricts supply and therefore leads to the price of nickel rising.
Elsewhere, pharmaceutical giant AstraZeneca (AZN) rose 0.7% to £73.70 after announcing positive results from two drug trials related to heart health.
The firm said its type-2 diabetes drug, Farxiga (dapagliflozin), on top of standard care showed a reduction in both the incidence of cardiovascular death and the worsening of heart failure in patients with and without type-2 diabetes.
Veterinary pharmaceutical firm Dechra (DPH) jumped 1.6% to £30.48 as it hiked its dividend following strong full year results.
For the year to 30 June, the firm reported a 17.5% rise in revenue to £481.8m, while underlying operating profit grew 27.3% to £127.4m. The firm increased its full year dividend by 23.9% to 31.6p per share.
Sequoia Economic Infrastructure (SEQI) fell 1.6% to 115p after announcing plans to raise money by issuing 125m new shares.
It will announce the price, which will be set at least greater than the existing net asset value of the investment trust plus the costs of the placing, on 13 September.
Woodford Patient Capital (WPCT) gained 0.4% to 41.25p after it appointed a new independent non-executive director.
Jane Tufnell, co-founder of another investment management firm called Ruffer, has been appointed with immediate effect.
The investment trust also announced that another non-executive director, Steven Harris, will step down on 30 September.
Gold miner Centamin (CEY) dropped 1.2% to 143p after it also announced a couple of boardroom changes.
The firm’s board now comprises 10 members after appointing two new non-executive directors, Catharine Farrow and Marna Cloete. Another non-exec director, Alison Baker, has resigned with immediate effect.
