The FTSE 100 rose sharply, surpassing 6,000 points, as investors looked beyond coronavirus cases and applauded positive economic data.
London’s blue-chip index was 2.2 per cent higher in afternoon trading at 6,028 points. The mid-cap FTSE 250 was up 1.2 per cent.
Read more: HSBC fall due to coronavirus pandemic
On Wall Street, sp 500 rose 0.6% at the start of the session. The Dow Jones rose 0.6% and the Nasdaq by 1%.
In Europe, the German Dax rose 2.9%. France’s ACC 2.3% higher and the Stoxx six hundred in a continent-wide foundation rose 2.1%.
European investors were boosted by survey data that showed the continent’s manufacturing sectors growing strongly in July.
In the euro area, “the growth of new orders outweighed production, suggesting that August deserves to see additional gains in production,” said Chris Williamson, A leading economist at IHS Markit.
Tech stocks also increased sharply, driven by the strong effects of US tech giants Facebook, Amazon, Apple and Google last week. Stoxx Europe’s six-generation index rose by more than 2%.
The FTSE one hundred increased despite the drop in stocks of HSBC, the pillar of the index, after its profits fell. The profit before tax fell 65% on the lender to $4.3 billion (3.3 billion pounds) due to the largest expected credit losses.
The UK and Hong Kong lender immersed itself in early operations. They were 2.2 consistent with a penny decrease that in the afternoon session.
“The effect of the pandemic has been incredibly evident on bank earnings in recent weeks,” said Craig Erlam, senior market analyst at foreign exchange company Oanda. “HSBC this morning has become the newest to establish massive loans.”
The FTSE 100, however, helped through the survey’s knowledge, apparently uk production production grew at its fastest speed since 2017 in July. Hopes for a U.S. stimulus bill have also increased sentiment.
Lloyds was the biggest riser on the index, with the lender’s shares rising 5.7 per cent. Packaging company Smurfit Kappa rose 5.4 per cent and broker Hargreaves Lansdown jumped 4.9 per cent.
Read more: UK manufacturing output grows at quickest pace since 2017
Jet engine maker Rolls Royce was the biggest faller as the recovery in the tourism sector was thrown into doubt by rising coronavirus cases around the world. It dropped 3.2 per cent as British Airways-owner IAG fell 2.1 per cent.
US stocks opened higher as investors chose to look past increasing coronavirus cases towards the chances of US Congress passing a long-awaited stimulus bill.
Ben Laidler, analyst at Towers Hudson, said: “We see room for an upside surprise in this week’ fiscal stimulus talks.”
However, investors are keeping a wary eye on the coronavirus case count. Global cases have now topped 18m. In the UK, the government is reportedly considering new measures to lockdown hotspots, including London-wide restrictions.
Investors have been betting on another round of US fiscal stimulus. But White House chief of staff Mark Meadows said he was not optimistic about a deal being reached soon.
Read more: Downing Street admits it could impose M25 quarantine ring
US-China tensions are also weighing on the FTSE 100 and global markets. Reports said Mike Pompeo, the US Secretary of State, will clamp down on an array of Chinese state-controlled software companies.
Gold was 0.2 per cent lower in early afternoon trading at $1,972 an ounce. That was down from the all-time high of above $1,980 an ounce that it touched last week. Inflation expectations and ultra-low real bond yields have driven up the yellow metal.
The post FTSE 100 breaks 6,000 and US stocks rise amid economic optimism appeared first on CityAM.
Video: Gold to Hit $2200-$2300 Range on Inventory Squeeze, Says UBP’s Kinsella (Bloomberg)
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