The FTSE continued to ignore a red-stained mining sector to focus on a buoyant Shell (LON:RDSa) and a sluggish showing from sterling.
Despite a potentially tricky OPEC meeting tomorrow, and a 0.3% dip from Brent Crude, Royal Dutch Shell managed to expand its gains as the day went on, with the stock now up 4.5% following the announcement it was restating an all-cash dividend. BP (LON:BP) got the rub from its rival’s growth, with the oil giant re-crossing the £5 mark with a 1.2% rise.
Combine that with the pound’s 0.4% decline against the dollar – with the greenback benefiting from a far, far better than forecast jump in the CB consumer confidence reading – and a 0.3% slide against the euro – likely thanks to the latest political Brexit drama in the UK – and the FTSE had its best day since the Bank of England’s rate dovish hike back at the start of the month. The UK index surged just shy of 1%, taking it back above 7450.
The FTSE wasn’t alone. The DAX and CAC were up 0.6% and 0.7% respectively, while the Dow Jones rose 80 points after the bell, taking the US index to yet another all-time high. The fact the Dow has done so even with the Republicans’ tax reform problems suggests that perhaps the index currently isn’t that dependant on Trump’s unachieved election promises.
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