* Major miners push up FTSE 100
* Gains in Asian shares factor into markets
* Brexit talks also in focus
(Updates to close)
By Shashank Nayar and Ambar Warrick
July 13 (Reuters) - British stocks closed higher on Monday,
recovering from the prior week's losses as the focus turned to
the upcoming second-quarter earnings season, although a
continued rise in coronavirus cases kept sentiment subdued.
The blue-chip FTSE 100 closed 1.3% higher, pushed up
by heavyweight mining stocks Rio Tinto and BHP Group
. The two will be the first among their peers to release
quarterly production data later in the month.
A recent rise in metal prices, particularly copper, has also
improved the prospects of major miners.
The mid-cap FTSE 250 added 1.2% for the day. While
second-quarter earnings are broadly expected to paint a dismal
picture, markets will be looking to corporate guidance on how a
post-COVID-19 recovery will pan out.
Asian shares also began the week on an optimistic note,
climbing toward five-month peaks even as some U.S. states
reported record new COVID-19 cases.
"July and August are generally weaker months for markets,
but this time they are being pushed higher on liquidity
infusion, upbeat corporate earnings updates and positive news on
the COVID-19 vaccine," said Keith Temperton, analyst at Lombard
Forte.
The FTSE 100 has rebounded about 26% from its March lows on
a raft of monetary and fiscal stimulus, but has struggled so far
in July to extend its gains, owing to pressure from rising
COVID-19 cases across the globe.
Rating agency Moody's warned on Friday that Britain will
suffer the sharpest peak-to-trough economic slump of any major
economy this year, while the health crisis will push up national
debt as a share of GDP by nearly a quarter.
Brexit negotiations are also back in focus ahead of the Dec.
31 end of the transition period, when Britain will leave the
EU's single market and customs union. Cabinet Minister Michael
Gove flagged some progress was being made in talks.
Private security company G4S rose 9.3% after it said
it could axe 1,150 jobs at its UK cash business as it grapples
with an increased shift to digital payments triggered by
Britain's coronavirus lockdown.
(Reporting by Shashank Nayar in Bengaluru with additional
reporting by Sagarika Jaisinghani
Editing by Shounak Dasgupta and Mark Heinrich)
