The FTSE 100 rallies after strong Eurozone PMI, commodity stocks lead gains

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The FTSE 100 recovered some of the ground lost yesterday as commodity related companies pushed higher.

Miners in particular were heavily hit yesterday on fears of a Chinese slowdown and a raft a downgrades in the sector.

Despite last night’s dismal Caixin Manufacturing PMI release, mining stocks rallied in a form of ‘sell the rumour, buy the fact’ rebound.

Oil related companies also rallied in tandem with the underlying price.

“There’s a bit of support coming through the oil price, which is acting as a trigger for the FTSE to reclaim some ground,” said Hantec Markets’ analyst Richard Perry to a Reuters reporter.

Adding to the risk on mentality was strong manufacturing data from the Eurozone which investors cheered after the poor gauge of factory activity from China.

Regardless of today’s rally, some analysts still the FTSE 100 in a technically bearish formation and feel the lows of 5768 could well be tested unless the FTSE 100 can make a break above 6250.

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