Markets rise in London on global rally

Markets rise in London on global rally

Markets rise in London on global rally

Global Markets Shares Up Friday (Adam Davy / PA) (PA Wire)

Global Markets Shares Up Friday (Adam Davy / PA) (PA Wire)

London markets traded as usual on Friday and saw a rise in stocks and the pound.

The London Stock Exchange has confirmed that it plans to maintain normal opening hours after the Queen’s death, but will close on public holidays.

The FTSE 100 has joined an international rally, which has seen global markets explode into a sea of ​​green after recent periods of poor performance.

It comes after the European Central Bank (ECB) raised the interest rate by 0.75 percentage points on Thursday to help tackle inflation across the euro zone.

Bring the rate to its highest point since 2011.

“Investors have left behind the ECB’s hike and Powell’s warning of further rate hikes, and the rally over the past two days has gained strength,” said Chris Beauchamp, chief market analyst at the platform. IG online trading.

“While the broader bear market most likely still has some work to do, it looks like the next bear market rally has come into action as well.”

But what happens with UK interest rates was thrown into turmoil by two events on Thursday.

Bank of England decision makers are likely to already be dealing with new information after Prime Minister Liz Truss announced a massive energy support package for households and businesses.

The Bank’s Monetary Policy Committee was due to meet next week, but due to the Queen’s death it has postponed the meeting for seven days.

“UK investors will no doubt feel somewhat conflicted given current events and the BoE has followed the lead of other institutions by postponing its rate hike,” Beauchamp said.

“But otherwise everything is as usual, and next week will again see a significant focus on the UK with the consumer price index (CPI) and employment data, even though it is unlikely to provide any real change in value. trend for the pound, which still appears to be on a downward path against the dollar. “

The FTSE ended the day up 1.2% at 7,351.07 points, up 89.01. In Europe, Dax and Cac 40 both closed up 1.4%.

On Wall Street, the S&P 500 was up 1.3% and the Dow Jones was up 1% shortly after the close of European markets.

The pound rose 0.9% to 1.1600 against the dollar and 0.4% to 1.1544 euros.

In company news, Asos warned about profits after sales fell short of expectations in August. Customers are tightening their belts and not shopping as much for clothes, the company said.

June and July were good months, the company said, and it expects sales for the year through the end of August to meet expectations. But fall and winter will be more difficult and profits will be “around the lower end of the business guide.”

Shares, on the other hand, rose by 1.2%.

The biggest bulls on the FTSE 100 were Centrica, up 4.12p to 86.9p, Anglo American, up 132p to 2,926.5p, Antofagasta, up 44.5p to 1,195.5p, Glencore, up of 17.25p to 488.4p and Standard Chartered, up 21.4p to 614.2p.

The biggest failures on the FTSE 100 were Avast down 3.6p to 726.6p, BAE down 3p to 784.4p, JD Sports down 0p to 126.1p, AstraZeneca down 12p at 10,500p and HSBC, down 1p to 525p.

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