FTSE 100 rises as fed concerns ease once again
The FTSE 100 gained 92.31 points during the first trading session of the week, closing at 6307.78, a rise of 1.49%. This was its biggest single day advance in more than a month, driven by negative employment data coming out of the United States.
The London blue-chip index finally had a chance to react to Fridays worse than expected payroll data, which led investors to believe that the early cessation of the Federal Reserve’s $85 billion a month stimulus package was now less likely. Interestingly it was retail banks that sent the biggest shock waves through the index as they bounced back from their recent troubles, particularly the Royal Bank of Scotland.
RBS advanced by 8.4p, or 3.07%, to close at 281.90. Concern seemed to ease over the likelihood of the bank being split up as part of the UK government’s plans to sell the high street bank and recoup the tax payers money that was invested as part of its bailout following the 2008 financial crisis. Other high street banks that ended the day with an advance were Barclays plc, HSBC Holdings plc and Lloyds Banking Group plc, whose registered games of 2.17%, 1.86% and 1.38% respectively.
There were just seven decliners among London’s top 100 shares today, led by insurance company Admiral Group PLC. The insurer declined by 0.98%, or 13 points, to close at 1314.00. Security company G4S plc slipped by 2.10 points, or 0.91%, resulting in an end of session price of 228.30. Other notable declines included Pearson plc, WM Morrison Supermarkets plc and Tate & Lyle plc, who declined by 0.77%, 0.61% and 0.30% respectively.