# FTSE 100 up as AstraZeneca gains offset commodity losses
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-15
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: FTSE 100 edges up as AstraZeneca boosts UK stocks
Meta Description: UK's FTSE 100 edges up on Monday as AstraZeneca and consumer stocks lift market sentiment amid concerns over China's economic slowdown. Stay updated
URL: https://financedigest.com/ftse-100-up-as-astrazeneca-gains-offset-commodity-losseshtml

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By Sruthi Shankar

(Reuters) -UK’s FTSE 100 edged up on Monday as gains in drugmaker AstraZeneca and consumer stocks relieved pressure from mining and oil heavyweights after data showed China’s economy unexpectedly slowed last month.

The blue-chip FTSE 100 added 0.2% to hold near 10-week highs, while the midcap FTSE 250 index inched up 0.1%.

[Investors are awaiting the UK employment report](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency") as well as consumer prices data later this week to gauge the state of the labour market and inflation.

The data could offer clues on whether the [Bank of England opts for a second consecutive 50-basis-point-rate hike](https://www.financedigest.com/asian-shares-gain-as-fears-about-rapid-fed-hikes-bank-crisis-fade.html "Asian shares gain as fears about rapid Fed hikes, bank crisis fade") at its September meeting.

The [mood was dull in Asian and European stock](https://www.financedigest.com/world-stocks-cling-to-upbeat-mood-dollar-stalls.html "World stocks cling to upbeat mood, dollar stalls") markets, with investors turning to defensive sectors such as healthcare and consumer staples amid worries about the health of the world’s second-largest economy.

[AstraZeneca gained 2.6% after the drugmaker said its cancer drug](https://www.financedigest.com/astrazeneca-lifts-2022-earnings-outlook-as-cancer-drugs-boost-results.html "AstraZeneca lifts 2022 earnings outlook as cancer drugs boost results"), Enhertu, developed with Japan’s Daiichi Sankyo delayed the progression of a form of advanced breast cancer in previously treated patients.

[Oil major Shell](https://www.financedigest.com/shell-chevron-and-petrobras-weigh-guyana-oil-auction-bids-sources.html "Shell, Chevron and Petrobras weigh Guyana oil auction bids -sources") and miners Rio Tinto and Anglo American slipped, in tandem with weaker commodity prices, after the release of the China data. \[O/R\] \[MET/L\]

The FTSE 100 has outperformed its [global peers this year due to its large exposure to commodity](https://www.financedigest.com/sp-global-acquires-firm-to-bolster-capability-to-track-commodity-shipments.html "S&P Global acquires firm to bolster capability to track commodity shipments") stocks that have surged on the back of a jump in oil and metal prices. A weakening [pound has also boosted dollar](https://www.financedigest.com/dollar-slips-after-upbeat-china-data-euro-pound-rise.html "Dollar slips after upbeat China data; euro, pound rise") earners in the index.

Whether this trend will continue ultimately hinges on the outlook for global energy [stocks relative to the broad market,” BCA Research](https://www.financedigest.com/3-essential-types-of-stock-research-tools.html "3 Essential Types of Stock Research Tools") analysts wrote in a note.

The FTSE 100 is up nearly 2% so far this year, while the MSCI [world equities](https://www.financedigest.com/world-equities-fall-u-s-treasury-yields-rise-after-hawkish-fed.html "World equities fall, U.S. Treasury yields rise after hawkish Fed") index has shed almost 13%.

Our [energy strategists remain bullish on oil](https://www.financedigest.com/exclusive-repsol-agrees-to-sell-alberta-oil-assets-to-cppib-backed-teine-energy-sources.html "Exclusive-Repsol agrees to sell Alberta oil assets to CPPIB backed-Teine Energy -sources"). Their [expectation that Brent will breach $110/bbl in Q4 and average $117/bbl in 2023 suggests that an overweight on the energy](https://www.financedigest.com/ecb-survey-shows-rising-inflation-expectations-despite-energy-price-falls.html "ECB survey shows rising inflation expectations despite energy price falls") sector – and by extension UK equities – remains appropriate.

(Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V and Vinay Dwivedi)


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