- FTSE100 gained 1.10% to trade at 7,057, while mid-cap focused FTSE250 index trades at 23,739, up by 0.54%.
- The blue-chip index received support from mining and leisure stocks.
FTSE 100 has strengthened further on Wednesday, trading up by 1.10% at 7,057, while mid-cap focused FTSE250 index trades at 23,739, up by 0.54%. The blue-chip index extended its rally for the second consecutive day, supported by the casino and mining stocks. Commodity prices recovered after the fear of a crisis in the Chinese economy due to the Evergrande default eased. Also, lifting of travel restrictions led to gains in the travel stocks. Also, a new takeover bid for sports betting company Entain Plc led to gains in the casino stocks.
Top five FTSE100 gainers
Entain plc (8.01%), Antofagasta plc (3.99%), Anglo American (3.94%), Glencore plc (3.91%), Flutter Entertainment (3.80%)
Top five FTSE100 losers
Kingfisher (-1.94%), Severn Trent Plc (-1.35%), AstraZeneca plc (-1.27%), Hikma Pharmaceuticals (-1.21%), Auto Trader Group plc (-1.10%)
Major European indexes are trading in the green zone. The German blue-chip DAX index is up by 0.69% at 15,454, while the benchmark index of France, CAC 40, was at 6,632, up by 1.22%. The growth forecast of Germany for 2021 was though lowered to 2.5% from 3.3% by the Ifo Institute. The institute cited supply chain disruption and the impact of Covid-19 as a reason for cutting the growth forecast.
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The pound trades at a one-month low against the dollar at 1.3642, down by 0.12%, while the EUR/ GBP currency pair traded at 0.8600, up by 0.22%. The pound is trading lower ahead of the Bank of England’s policy meeting. Investors anticipate the central bank might push back the rate hike decision after weak economic output and retail sales data.
WTI crude oil future contract traded at USD 71.67, up by 1.67%, while the Brent crude oil trades at USD 75.43, up by 1.45%. Crude oil prices continued to trade higher for the second day after data showed that US crude oil reserves were down more than market expectations after the Gulf of Mexico was struck by two hurricanes. Also, reports of some OPEC members unable to raise output supported the crude oil price.
Meanwhile, the gold futures contract was trading in the red, down by 0.21% at USD 1,774 per ounce.
Major Asia Pacific indexes made a mixed closing. Shanghai Composite of China closed at 3,628, up by 0.40%, while India’s Nifty 50 closed at 17,546, down by 0.09%. Australia’s ASX200 closed at 7,296, up by 0.32%, while Nikkei 225 of Japan was down by 0.67% at 29,639.