AUS
NZ
UK
CA
USA
IND
Highlights
- FTSE 100 trades in the positive territory, up by 0.54% at 7,048, while the mid-cap focused FTSE 250 index was at 22,738, up by 0.37% supported by the banking shares.
- Investors anticipate that the Bank of England (BoE) might consider raising interest rates as soon as February 2022.
FTSE100 has held its early gains, trading up by 0.54% at 7,048, while the mid-cap focused FTSE250 index was at 22,738, up by 0.37% in the late afternoon trading session at 1:45 pm GMT +1.
The blue-chip index was supported by banking shares, which are trading higher, Lloyds Bank was up by 2.56%, Barclays Plc was up by 2.22%, as investors anticipate that the Bank of England (BoE) might consider raising interest rates as soon as February 2022, which will benefit the banks.
As per the Bank of England’s last commentary, inflation in the UK is set to rise in the last quarter of 2021 and could hit above the 4% mark, more than double the central bank’s 2% target. The rise in inflation could force the central bank to intervene by tapering the pandemic-era bond-buying program followed by a hike in interest rates.
Top five FTSE100 gainers
JD Sports Fashion plc (3.43%), Lloyds Banking Group plc (2.77%), Barclay’s plc (2.53%), Rightmove plc (2.33%), Standard Chartered plc (2.19%),
Top five FTSE100 losers
Hikma Pharmaceuticals (-2.39%), CRH plc (-1.88%), Rio Tinto plc (-1.83%), Melrose Industries plc (-1.76%), Reckitt Benckiser Group Plc (-1.24%),
European Markets
Major European market indexes are trading in the green. The German blue-chip DAX index is up by 0.31% at 15,083, while the benchmark index of France, CAC 40, was at 6,522, up by 0.69%.
France, one of the largest economies in the Eurozone, reported a rise in industrial production at 1% in August month-on-month, which is a significant improvement compared to 0.5% gains reported last month.
Currency Markets
The pound trades higher against the dollar at 1.3616, up by 0.03% after yesterday’s close of 1.3613, while EUR/ GBP currency pair traded at 0.8514, down by 0.25%. The pound bounced back against the dollar, climbing above the 1.3600 mark, witnessing fresh buying from the investors. Meanwhile, the US dollar was at lower levels following a modest pullback in the US treasury bonds yields. The Federal Reserve’s positive outlook towards rollback of the stimulus package and hike in interest rates will continue to support the US dollar.
Commodities
WTI crude oil futures contract traded at USD 78.92, up by 1.78%, while the Brent crude oil traded at USD 82.68, up by 1.74%. Crude oil prices are trading at three year high after OPEC+ nations decided to raise crude oil output in a gradual manner. As per its previous plan in July 2021, OPEC+ nations will boost crude oil output at 400,000 barrels each month until April 2022.
Meanwhile, the gold futures contract traded in the negative territory, down by 1.01% at USD 1,750 per ounce.
Asian Markets
Major Asia Pacific indexes made a mixed closing. Australia’s ASX200 closed at 7,248, down by 0.41%, while India’s Nifty 50 closed at 17,822, up by 0.74%. Nikkei 225 of Japan was down by 2.19% at 27,822, while the Hang Seng index closed at 24,104, up by 0.28%. China’s stock market remains closed today due to national holidays.
