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Mining, energy stocks push FTSE 100 higher; Asos drops on profit warning

UK’s FTSE 100 rose on Monday, helped by gains in heavyweight mining and energy stocks, while a stronger pound on rising inflation and interest rate hike bets limited further gains.

Inflation is back on investor radar after Bank of England policymaker Michael Saunders told households to get ready for “significantly earlier” interest rate rises as inflation pressure mounts and BoE Governor Andrew Bailey said above-target inflation was concerning.

The blue-chip FTSE 100 index gained 0.3% by 0715 GMT with Royal Dutch Shell, BP, Anglo American and Rio Tinto among the top gainers.

The pound strengthened 0.4%, limiting gains in the export-focussed FTSE 100.

The domestically focussed mid-cap index dropped 0.3%, with consumer services stocks among the worst performers.

In company news, online clothing store ASOS fell 11.4% after it parted with Chief Executive Officer Nick Beighton and as it warned that higher logistics costs and supply chain disruption could force 2022 profits to drop by more than 40%.

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