FTSE 100 Rebounds as Fed’ concerns ease
The FTSE 100 rebounded from Tuesdays decline to a near month long low as concern over the Federal Reserve’s monetary policy eased. Markets across the globe have been on edge since the central banks chairman, Ben Bernanke, made comments suggesting that they may look at “tapering” the stimulus program if the US economy shows signs of steady recovery. Since then investors have been second guessing themselves, weighing positive news against the likelihood that it will provide further grounds for the quantitative easing to be pulled.
The FTSE advanced by 33.46 points to 6558.58 at the close of play, a rise of 0.51%. While the rise may not have been in line with what investors have become accustomed to in the last few months during the recent rallies, it is a signal of future potential trends. The markets were heavily suppressed however, as investors were also wary of the upcoming meetings for the Federal Reserve and what the minutes to those meetings may contain.
Among the index’s top earners were EasyJet PLC, who bounced back from yesterdays declines with an advance of 42.00 points, or 3.44%, to 1263. The only other company on the index to break the 2% barrier in terms of advances was GKN PLC, who lead the index with an advance of 15.10 points, or 5.06%, to close at 313.40.
HSBC Holdings PLC advanced by 1.89%, adding 18.00 points and closing at 731.90. Mobile communications giant, Vodafone PLC, added 1.83% on the back of continued speculation that they may be readying a takeover bid for Kabel Deutschland. The proposed move would give Vodafone a foothold in the European market, as well as an entrance point into the German television market.
The days biggest loser on the London blue-chip benchmark was Wolseley PLC, who declined by 212.00, or 6.32%, to 3,145. The construction materials supplier announced subpar performance in the third quarter, which was also some way off analysts already downbeat predictions.
Miners were also hit heavily, with Randgold PLC, Antofagasta PLC, Anglo American PLC and Aggreko PLC all registering declines of more than 1%. Evraz PLC was the sectors biggest faller, ending the day with losses of 3.70 points, or 2.69%, and a price of 134.00.