The FTSE 100 index of top stocks nudged above its record high yesterday, as a rush for precious metals propped up shares in London-listed mining companies.
Gold and silver, seen as safe haven assets, began to surge on Wednesday night after the US Federal Reserve struck a cautious note about economic growth.
Traders pointed to the Fed’s so-called dot plot, which showed that members of the central bank’s rate-setting panel expect a gentler pace of rate rises in the coming years. This can be read as a sign the world’s biggest economy will recover more slowly than expected, despite the Fed hinting that it will start to increase rates later this year.
“[T]he Federal Reserve suggested a less aggressive timeline for raising interest rates even as it opened the door for the first hike in almost a decade,” said David Papier, market analyst at ETX Capital.
This caution was echoed by Bank of England official Andy Haldane, who said a cut to interest rates was just as likely as an increase.
Gold spot prices were up 0.4pc to $1,172 an ounce by yesterday evening, building on gains made after the Fed statement. Silver prices rose 1.3pc to $16.16 an ounce.
The FTSE 100 index of blue-chip shares briefly touched a fresh intra-day high of 6,982.79 during morning trading, breaking a record set on March 2. The index then closed the day 17.12 points higher at 6,962.32, which beat the March 5 close. Until a month ago, the record level had been untouched since December 1999.
Pound falls 0.4% against the dollar, boosting overseas earners in the UK’s leading index. The UK market has been steadily rising over the past few days, with investors shrugging off …
Read more ›
A shift in the auto industry is looming. EVs or Electric vehicles, the long-anticipated cars of the future, are poised to dominate global markets in the next few decades. Although …
Read more ›
Accrue Investment Management Ltd
4 Northumberland Buildings
Tel: 01225 303333
Fax: 01225 422120