Markets: FTSE100 rallies on hopes of ECB stimulus
Europe’s markets bounced back yesterday as investors hoped for stimulus after the Swiss National Bank unpegged the franc from the euro. The FTSE 100 climbed 1.7% to close at 6,498.
- FTSE 100 up 1.7% to 6,498
- Gold up 2.77% to $1,262.73/oz
- £/$ - 1.5183
Randgold was the day's top performer as the price of gold rose, adding 6.4%. Supermarkets were also in favour, with Morrisons and Sainsbury's each rising 5%.
In European markets, the Paris CAC 40 gained 100 points to 4,323, and the German Xetra Dax rose 215 points to 10,032.
In the US, the Dow Jones Industrial Average fell 0.6% to 17,320, the S&P 500 lost 0.9% to 1,992, and the Nasdaq Composite slid 1.5% lower at 4,570.
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Overnight in Japan, the Nikkei 225 fell 1.4% to 16,864, and the broader Topix index lost 0.9% to 1,363. And in China, the Shanghai Composite rose 1.2% to 3,376, and the CSI 300 was 0.9% higher at 3,635.
Brent spot was trading at $48.45 early today, and in New York, crude oil was at $46.58. Spot gold was trading at $1,258 an ounce, silver was at $16.93 and platinum was at $1,251.
In the forex markets this morning, sterling was trading against the US dollar at 1.5209 and against the euro at 1.3073. The dollar was trading at 0.8595 against the euro and 116.48 against the Japanese yen.
And in the UK, retailer JD Sports says it will beat its profit forecast for the year after a good Christmas. Like-for-like sales in the five weeks to 3 January rose by 12% compared with the previous year.
David Stevenson, former MoneyWeek writer and director of The Fleet Street Letter, believessilver could be about to start a record climb. Click here(capital at risk)to read about the three irresistible forces David believes could push the price of silver through the roof.
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