Wednesday 12 December 2018

FTSE gains bounce from Wall Street

Traders work on the floor of the New York Stock Exchange
Traders work on the floor of the New York Stock Exchange

PA

The FTSE 100 ended in positive territory yesterday, buoyed by mining and commodities stocks.

London's top flight closed the day up 34.43 points, or 0.49pc, at 7,038.95, with the likes of Antofagasta, Anglo American and Fresnillo leading the charge.

A strong performance from Wall Street overnight also helped boost the index, as well as a bounce back in oil prices.

Fiona Cincotta, a senior market analyst at City Index, said: "Following a Fed-inspired rally on Wall Street, the FTSE jumped higher on the open and retained its gains across the session.

"Whilst banks initially traded higher following a comfortable pass in the most recent stress test, commodity stocks did most the heavy lifting as they traced base metals and oil prices higher."

A weaker pound sterling, flagging under the weight of yet more Brexit malaise, also offered support to the FTSE 100.

Sterling was down 0.3pc versus the US dollar at 1.278 and shed 0.4pc against the euro to 1.123 at the London market close.

"The pound was trading lower, giving back some gains from the previous session. Concerns over the outcome of Brexit and the impact that Brexit will have on the economy continued to dominate sentiment towards the pound," Ms Cincotta said.

In Europe, Germany's DAX shed 0.01pc while France's CAC 40 was up 0.47pc.

The ISEQ index of Irish shares closed at 5850.55, up 0.25pc. The main banks moved up, with PTSB shares up 8.72pc, Bank of Ireland up 3.93pc and AIB rising 0.84pc. Laggards included Total Produce, whose shares were down 7.46pc, and C&C, down 4.13pc.

Irish Independent

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