Post Icon

FTSE100 Closes at a Fresh Record High

The US Federal Reserve’s cautious signal gave a boost to safe haven assets like gold

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.

Our services, clearly explained

Read more »

Receive your personalised investment portfolio

Click here »

Stay updated, sign up to receive our newsletters

Subscribe »

Accrue News

Surging travel stocks helped push European markets higher at the opening on Tuesday, spurred on by fresh Covid-19 vaccine hopes and news that US President-elect Joe Biden can officially start …
Read more ›

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 ›

Get in Touch

Accrue Investment Management Ltd
4 Northumberland Buildings
Queen Square

Tel: 01225 303333

Fax: 01225 422120