FTSE index surges up as US says it will keep pumping money into economy
FTSE 100 up by more than 40 points, led by mining stocks as Fed head Ben Bernanke says he's committed to monetary stimulus
Thursday 11 July 2013
The FTSE 100 index has risen on the back of good news from the US that the easy money era is far from over.
Federal Reserve chairman Ben Bernanke has reaffirmed his commitment to financial stimulus, saying that while the US central bank could start "tapering" its $85 billion-a-month bond-buying program later this year, Fed officials aren't abandoning their broader commitment to easy-money policies.
By early afternoon, the FTSE 100 had risen by more than 45 points or 0.7 per cent at the news, with mining stocks leading the charge upwards.
Bernanke said on Wednesday that the overall message coming from the central bank was that "a highly accommodative policy is needed for the foreseeable future".
"For now there's only one story in play and that's markets attempting to assess just how good the news was from Bernanke," Mike McCudden, head of derivatives at Interactive Investor, said.
He added, sounding a note of caution: "The bulls may be in charge but they will want to enjoy this while they can - when the timing of the tapering is announced, the mood will most certainly change."
Mining stocks were the biggest risers by some margin, dominating the leaderboard, as copper prices hit a near one-month high on the back of the news from across the pond.
AB Foods also managed strong gains, up 4.3 per cent, driven by a strong third-quarter performance at Primark, which it owns, prompting Panmure Gordon to give the company a "buy" recommendation.
"My outlook is still bullish on the FTSE ... For me, the main target remains 6,755 (around the 2007 peak)," GFT Markets technical analyst Fawad Razaqzada said. The market is currently about 200 points below that.
- 1 Scottish referendum: So how about the English now being given a chance to split from England?
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 Friends 20th anniversary: The highs and lows of the cast's careers since 2004
- 4 The response to my Pizza Express review has been overwhelming, and taught me a lot about journalism
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Scottish independence: Despite defeat history may still point to Alex Salmond as the victor
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish referendum: Police struggle to control Unionist rally in Glasgow's George Square
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...