LONDON MARKETS: FTSE 100 Rises, Driven By Banks As Market Watches Out For Fed Meeting
09 November 2018 - 12:59AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
London's main stock index rose Thursday, with banks and resource
stocks again leading the gains as investors kept a watch out for a
U.S. Federal Reserve meeting.
How are markets performing?
The FTSE 100 index rose 0.5% to 7,150.17 from Wednesday's rally
of 1.1%
(http://www.marketwatch.com/story/london-stocks-climb-amid-lack-of-surprises-in-us-midterms-2018-11-07).
The British pound fell to $1.3104 from $1.1326 late Wednesday in
New York.
What's moving markets?
A relief rally was triggered for the FTSE on Wednesday, along
with global stocks, after midterm elections that came in largely as
forecasters expected, with signs that U.S. President Donald Trump
may seek bipartisan cooperation also a positive.
Some of that optimism remained for Thursday, but investors were
also looking forward to the outcome of a Federal Open Market
Committee meeting, which isn't expected to yield a change in
interest rates. Investors will be eager to see what the Fed will
indeed stick to its mantra of gradual hikes in rates, even after
October's meltdown for stocks.
Brexit was back on the radar amid reports a key cabinet meeting
to discuss the U.K.'s position has been delayed from Thursday to
the weekend. The Guardian
(https://www.theguardian.com/politics/2018/nov/07/crunch-cabinet-meeting-over-theresa-may-brexit-deal-delayed-amid-row)
reported that a disagreement over whether cabinet members could see
the final working document over the Irish border backstop. Irish
Prime Minister Leo Varadkar suggested on Wednesday it would be
tough to still seal a deal between London and Brussels in
November.
Up 1% this week so far, the British pound eased up, which helped
provide support for the main index as multinational companies
generate most of their sales in other currencies.
What stocks are moving?
Heavyweight HSBC PLC (HSBA.LN) (HSBA.LN) rose 1.5%, with Lloyds
Banking Group PLC (LLOY.LN) (LLOY.LN) up 2.8% and Barclays PLC
(BCS) (BCS) up 2.4%.
Read:HSBC customer accounts compromised in data breach
(http://www.marketwatch.com/story/hsbc-customer-accounts-compromised-in-data-breach-2018-11-06)
Royal Dutch Shell Group PLC (RDSA.LN) (RDSA.LN) rose 0.7% and
Rio Tinto PLC (RIO.LN) (RIO.LN) gained 1.6%.
Burberry Group PLC (BRBY.LN) shot up 2.6% after the luxury
retailer posted a 36% profit rise and backed its 2019 guidance.
(http://www.marketwatch.com/story/burberry-profit-up-36-backs-2019-guidance-2018-11-08)
(http://www.marketwatch.com/story/burberry-profit-up-36-backs-2019-guidance-2018-11-08)--
Annekan Tappe contributed to this report
(END) Dow Jones Newswires
November 08, 2018 08:44 ET (13:44 GMT)
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