Mon, 9th Jul 2018
The FTSE 100 is on track for its strongest quarter since 2010. Strength in commodities stocks and banks helped to boost the index, as fears over the global trade situation eased. If the trend continues, then the UK’s leading index will enjoy its best quarter in almost eight years.
The FTSE 100 index opened up by 0.8 percent during the early hours of trading, while the mid caps also made some modest gains. The FTSE is not the only index to be enjoying a rally. European indexes also saw some gains, with the jitters over global trade easing. China has opted to ease the curbs on foreign investment, which as greatly benefited the index.
The FTSE made back Monday’s losses, and is now on track to have made a 9 percent gain on the quarter. The best performance since Q3 2010 for the index.
Mike van Dulken, the head of research for Accendo Markets, noted that the index had been helped by the pound retreating since it’s high in April, as well as increasing oil prices. The FTSE has heavy international exposure, so it benefits from a weaker pound.
Investors have started to show some more risk-affinity, and shares in cyclical sectors, including energy, financials and materials, have been performing well. Miners all made significant gains, with Anglo American, BHP Billiton and Antofagasta up between 2.0 and 3.8 percent each. HSBC, Barclays and Lloyds also made some gains. The top performer of the day was Micro Focus, who added 5.4 percent, however the stock is down almost 47 percent compared to the start of the year.