Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

MARKET WRAP: FTSE surges after lower open, USD strong, Oil lower

EconomyJan 27, 2022 16:28
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Key Points

  • FTSE 100 closing price of 7,556.7 (+1.2%)
  • FTSE has 200 point swing from low point
  • Financials lead upturn on expectations of higher rates
  • Diageo strong after results
  • USD strong after Fed
  • Crude slips after hitting multi-year highs
  • Cryptos lower with focus on Fed

By Samuel Indyk

Investing.com – The FTSE 100 opened lower but bounced 200 points from its low print at one stage before edging back to close higher by 1.2%% at 7,556.7.

Banks led the rebound in the blue-chip index with the prospect of higher rates in the UK and US supporting share prices. Standard Chartered (LON:STAN) and HSBC (LON:HSBA) led the gains in the financial sector with higher rates set to help profitability.

Diageo (LON:DGE) shares were also higher after the alcoholic drinks maker said net sales were up 15.8% in the first half of the year, with operating profit increasing 22.5%. The company was also upbeat on its outlook for the second half of the year, despite tough comparatives.

“Diageo is very much regarded as a consumer staple and a building block of most portfolios, and the market consensus of the shares as a buy is indicative of ongoing investor support for prospects,” said interactive investor Head of Markets Richard Hunter.

However, Hunter cautioned that the company will have to navigate some challenges if the shares are to continue to perform well.

“There will continue to be hurdles to negotiate, both within and outside of the company’s control," Hunter addied. "The effects of the latest variant are still being felt to differing degrees, supply chain blockages have yet to ease and inflation has yet to be contained from a global perspective. Added to the impending round of tougher comparatives in the second half, the company will need to maintain the momentum provided by the first.”

The USD strengthened in the wake of the Fed’s decision on Wednesday with the US Dollar Index hitting its highest level of the year. Although he didn’t commit to hiking interest rates at every meeting, Fed Chair Powell didn’t rule it out either, which some have viewed as a hawkish pivot.

GBP/USD slipped below 1.3400 to its lowest level since 23rd December as the USD strengthened with greenback stronger than all its major counterparts.

WTI and Brent crude futures both hit multi-year highs on Thursday, the latter’s March contract briefly trading above $91/barrel, however, most of the volume is in April which didn’t quite break $90. The geopolitical tensions in Russia and Ukraine are continuing to support prices while the supply picture remains tight ahead of the next OPEC+ meeting which is scheduled to take place on 2nd February. The group is likely to reconfirm its production plan that will see overall production increase by 400,000 bpd for the month of March.

Bitcoin and other major cryptocurrencies were slightly lower despite a rebound in stocks, particularly the tech-heavy Nasdaq 100. However, Bitcoin is well off the low print hit earlier in the week and there’s hope in the community that the heavy selling may be over for now.

“The cryptocurrency was getting into dangerous territory but has recovered well as sentiment has improved and now looks in a much more comfortable position,” writes OANDA Senior Market Analyst Craig Erlam. “Of course, volatility is still here and there's plenty of underlying anxiety in the market that could see Bitcoin tumble again but suddenly, $40,000 is looking more vulnerable than $30,000.”

-----------------------------------------------------------

Subscribe to Investing.com UK here

------------------------------------------------------------

MARKET WRAP: FTSE surges after lower open, USD strong, Oil lower
 

Related Articles

Stocks tumble on growth concerns, bond yields slip
Stocks tumble on growth concerns, bond yields slip By Reuters - May 24, 2022 1

By Herbert Lash and Lawrence White NEW YORK/LONDON (Reuters) -Shares slid worldwide on Tuesday as supply chain woes and surging costs hurt corporate earnings and manufacturing...

WHO donors agree to fix 'rotten' funding model
WHO donors agree to fix 'rotten' funding model By Reuters - May 24, 2022 1

By Emma Farge and Jennifer Rigby LONDON (Reuters) - World Health Organization members formally agreed on Tuesday to a plan to overhaul its funding model which has been described...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Bamfo Darkwah Ebenezer
Bamfo Darkwah Ebenezer Jan 28, 2022 7:04
Saved. See Saved Items.
This comment has already been saved in your Saved Items
why is the pounds so strong against the new Zealand dollar?
Scott Senior
Scott Senior Jan 28, 2022 7:04
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Because the NZ dollar is back by pebbles and shells :) joking of course. GBP has been under stress since Brexit, but now seems to be rebounding strongly against a basket of currencies
Sam Uba
Sam Uba Jan 27, 2022 20:34
Saved. See Saved Items.
This comment has already been saved in your Saved Items
logically how does this makes sense with USA inflation. Yet the dollar printed at its highest. ********the big boys game
william barber
william barber Jan 27, 2022 18:19
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why cant i share this article to twitter
Joy Samson
Joy Samson Jan 27, 2022 18:19
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not the share
Nour Diin
Nour Diin Jan 27, 2022 17:55
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm still trying to work through this process
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email