FTSE 100 leaps further as US Fed holds interest rates at 0.25%

Summary

  • FTSE 100 gathered momentum on Thursday after the US Fed maintained the rates.
  • Midcap-heavy FTSE 250 traded marginally higher as corporate earnings unfolded.
  • European shares traded mixed with CAC 40 of the Euronext Paris leading

UK shares gathered momentum on Thursday, 29 April, after the US Federal Reserve left the interest rates unchanged at 0.25 per cent, maintaining the dovish stance. The benchmark FTSE 100 managed to keep up the gains after advancing in quick successions in the morning trade.

The broader share indices FTSE 350 and FTSE All-Share jumped in line with the gains of FTSE 100, but the mid-cap reflector of UK -- FTSE 250 -- slipped in the mid-morning deals. The large part of the optimism has been driven by the upbeat corporate earnings with a large section of blue-chip heavyweight companies upgrading their respective previous guidance.

Also Read | US Fed maintains status quo on interest rate, bond purchases

According to the data available with the London Stock Exchange, FTSE 100 surged as much as 0.81 per cent to an intraday high of 7,019.76 from the previous close of 6,963.67.

FTSE 100 (29 April)

(Source: Refinitiv, Thomson Reuters)

On the other hand, FTSE 250 traded 0.16 per cent higher at 22,474.74, FTSE 350 and FTSE All-Share oscillated with gains of up to 0.60 per cent.

The headline FTSE 100 index has largely risen in the present week, barring a moderate drop on Tuesday. The index took almost seven sessions to reclaim the 7,000 mark after it registered a 14-month high last week. Going ahead, the investors will be closely watching the developments around the Stage 3 of reopening, the extent of the vaccination programme and emergence of new variants of the coronavirus.

As of now, the market participants are now repositioned to take cues from the GDP growth rate for the quarter ended 31 March 2021, slated to be announced by the US Bureau of Economic Analysis later today.

Meanwhile, European shares traded mixed with CAC 40 of the Euronext Paris leading the charge. Germany’s DAX shed 0.34 per cent to 15,240.45, France’s CAC gained 0.45 per cent to 6,335.22, Italy’s FTSE MIB added 0.13 per cent to 24,491.43, IBEX 35 of Spain soared 0.37 per cent, while Switzerland’s SMI soared 0.25 per cent to 11,131.26.


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