Despite sterling managing to lift off the day’s CPI-inflicted lows, the FTSE really gathered a head of steam on Wednesday afternoon.
After a terrible start to the week the FTSE has undergone a pretty sharp rebound in the last couple of sessions, with its latest 0.9% increase sending the index back towards a near 6 week, 7300 peak. Yet it wasn’t just the fact March’s UK inflation reading poured cold water on the pound – cable is down 0.4%, but above $1.42, while against the euro sterling shed half a percent to lurk the wrong side of €1.15 – that sent the FTSE higher. No, it was also the sight of a blossoming set of commodity stocks.
Brent Crude is trading at $72.70 per barrel, causing BP (LON:BP) and Shell (LON:RDSa) to jump 2% apiece, while copper’s own 2.3% increase, alongside some positive notes from HSBC, has created a raft of 4-5% gains for the mining sector’s big hitters.
Elsewhere things were nowhere near as chipper as they were in the UK. The eurozone indices weren’t happy with the euro’s rebound against the pound, and 0.2% rise against the dollar, with the DAX struck under 12600 after falling 0.3%. As for the Dow Jones, the US index slipped 50 points after the bell, ducking below 24750 as it failed carry over the momentum seen on Tuesday.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.