The U.K.’s main stock index shot higher on Wednesday, with resource stocks driving the gains as investors breathed took news of U.S. midterm elections in stride and used it as an excuse to buy assets perceived as riskier, such as equities.
How markets are performing
The FTSE 100 UKX, +0.98% rose 1.2% to 7,129.05, after Tuesday’s loss of 0.9%.
The British pound GBPUSD, +0.4046% jumped to $1.3168 versus $1.3099 late Tuesday in New York, helped by weakness in the U.S. dollar.
What’s moving markets
Tuesday’s U.S. midterm elections resulted in a split Congress, as widely expected with the Democrats taking control of the House of Representatives and Republicans holding on to the Senate. But there was relief that some of the long-shot outcomes, such as a Democratic sweep across Congress, didn’t happen.
Still, President Donald Trump could run up against difficulties in pushing through his agenda including further tax cuts, though concerns over that weren’t enough to shake global stocks.
Investors were also able to look past sterling strength, which came as the dollar slumped in reaction to the midterm outcome. Sterling gains can weigh on multinational companies that generate most of their sales in other currencies.
What stocks are active?
Among the handful of losers, Marks & Spencer Group PLC MKS, -0.99% slid 0.5% after revenue fell across both its food and clothing-and-home units.
ITV PLC ITV, -4.18% tumbled 3.6% after warning of weaker advertising in the fourth quarter due to economic uncertainty.
Resource stocks climbed, alongside higher metals and oil prices. BP PLC BP., +1.15% BP, +0.94% gained 1.7%, while Rio Tinto PLC RIO, +1.19% RIO, +0.72% gained 2.8% and Glencore PLC GLEN, +1.23% GLEN, +1.23% rose 2.8%.
Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.