- FTSE 100 rebound lost steam after rising to 2016 high in March
- U.K. stocks at record valuation premium to European peers
Gains in commodity producers pushed the U.K.’s FTSE 100 Index higher for the second time in three sessions.
Anglo American Plc and BHP Billiton Ltd. rose more than 1.6 percent. Shire Plc rose 2.7 percent as Bank of America Corp. said it may become an acquisition target if new U.S. tax proposals derail a deal between Pfizer Inc. and Allergan Plc. Banks also advanced, with Barclays Plc and Standard Chartered Plc up at least 1.5 percent.
The FTSE 100 rose 0.6 percent at 8:49 a.m. in London. A rebound in the benchmark has lost steam after it rose to its highest level this year at the end of March. The FTSE All-Share Index and Ireland’s ISEQ Index also climbed today.
U.K. shares are beating peers in Europe. The valuation of companies in the broader FTSE 350 Index has climbed to a record premium versus the Stoxx Europe 600 Index, signaling that equity investors have so far shrugged off fears about a June referendum to decide the country’s membership in the European Union.