The benchmark FTSE 100 index of the London Stock Exchange today surged ahead, recouping previous day’s losses, as reiteration of a “temporary” tag to the accelerating inflation by BOE Governor led to receding interest rate worries and spurred positive trading sentiment. Governor Bailey had, earlier in the day, in his Mansion House speech stressed on the importance of resisting premature tightening so as to avoid undermining the economic recovery.
The strong manufacturing PMI numbers too helped FTSE 100 to look beyond Covid surge and rise to an intra-day high of 1.30 percent rally at 7129 levels. The IHS Markit/CIPS UK Manufacturing PMI reading of 63.9 reassured market participants of the pace of rebound in the manufacturing sector and supported market sentiment. At the current level of 7095, the index is only 1.25 percent lower than the 52-week high of 7185.
In the 101-scrip index, only 30 scrips have declined from Wednesday’s levels and the remaining 71 scrips have advanced from the previous day’s levels indicating broad-based strength in the market.
Fresnillo has gained 5.34 percent whereas J.D. Sports Fashion has advanced by 3.55 percent.
B&M European Value Retail has corrected by 2.13 percent followed by Burberry Group which is trailing previous day’s levels by 1.45 percent.
The pound sterling touched a low of $1.38, the weakest level since early April as dovish reiterations by officials of Bank of England contrasted with the aggressive postures and stance adopted by the Fed officials.
In addition to domestic indicators, markets look forward to the Initial / Average Jobless claims data and Manufacturing PMI numbers expected from the U.S. later in the day as well as the crucial Non-Farm Payrolls data due for release late on Friday.
FTSE 100 Leaps On Dovish BOE Stance
2021-07-01 13:19:50
