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U.K. stocks edged higher on Monday as surging commodity prices helped lift energy and mining stocks. <\/p>\n
The upside remained limited as the pound drifted higher against its major counterparts in the wake of hawkish comments from Bank of England officials.<\/p>\n
BoE policy maker Michael Saunders told The Telegraph on Saturday that inflationary surge “could become more persistent unless monetary policy responds.”<\/p>\n
“I think it is appropriate that the markets<\/span> have moved to pricing a significantly earlier path of tightening than they did previously,” Saunders said adding to expectations that the central bank is likely raise rates sooner than previously expected. <\/p>\n Interestingly, Saunders remarks came after a warning from Governor Andrew Bailey that inflation exceeding the BoE’s goal of 2 percent will be damaging the economy<\/span>.<\/p>\n The benchmark FTSE 100 rose 13 points, or 0.2 percent, to 7,108 after rising 0.3 percent on Friday.<\/p>\n Miners Anglo American, Antofagasta jumped around 3 percent while oil giant BP Plc advanced 1.8 percent and Royal Dutch Shell added 1.6 percent. <\/p>\n Lender HSBC climbed 1.4 percent, Lloyds Banking Group rose 0.6 percent and Barclays gained half a percent as traders ramp up bets of a November interest rate increase. <\/p>\n XP Power gained half a percent. The company said its revenue in the third quarter was $61.6 million pounds, a 5 percent decline year-on year on a constant currency. <\/p>\n However, orders for the quarter increased 87 percent on constant currency to 97.2 million pounds.<\/p>\n Ferrexpo jumped 4 percent after announcing inaugural decarbonisation targets. Market Analysis<\/p>\n<\/div>\n
Online fashion retailer ASOS plunged more than 9 percent after a profit warning. <\/p>\n<\/p>\n