LONDON, June 29 (Reuters) - Britain's FTSE 100 share index hit a 3-week high on Thursday, fired up by strong resources and bank stocks, although trading levels were modest ahead of a U.S. interest rate decision.
Banks saw HSBC (HSBA.L: Quote, Profile, Research) and Royal Bank of Scotland (RBS.L: Quote, Profile, Research) gain 1.1 percent, while Barclays (BARC.L: Quote, Profile, Research) put on 1.5 percent. Traders said an easing of concerns that the Federal Reserve would hike U.S. interest rates by 50 basis points instead of 25 basis points as previously expected helped the banks. Higher interest rates raise the prospect of bad debts and crimp consumer borrowing.
Online gaming company PartyGaming (PRTY.L: Quote, Profile, Research) was a major gainer, up 3.1 percent, after a report that it is set to unveil plans to expand into sports betting through acquisitions. The Guardian newspaper said the move would be funded with a bond issue worth up to 500 million pounds.
Oil majors BP (BP.L: Quote, Profile, Research) and Royal Dutch Shell (RDSa.L: Quote, Profile, Research) gained around 1.3 percent each as crude prices climbed further above $72 after falls in U.S. crude and gasoline inventories, raising concerns about fuel supplies.
By 1002 GMT the FTSE 100 was up 67.5 points or 1.2 percent at 5,746.1, its highest since June 6 and well above mid-June's the 6-month lows of 5,467.4 scored on concerns that interest rates would have to spike to contain inflation.
"We are responding now dramatically to the vagaries of hype, to base metals and oil prices, that's all the market is about," said David Buik, a market commentator at spread betters Cantor Index.
He added that markets were slowing down as investors waited for the Fed decision and ahead of the quarter and half-year end. Many investors were also distracted by UK summer sporting events such as Wimbledon.
Posts
No comments:
Post a Comment