The UK benchmark index has jumped in London in today’s session, clawing back some of the losses posted in the previous week when equities around the world were sold off amid interest rate concerns. Resource stocks, which suffered some of the biggest losses in the previous sessions, are currently leading the FTSE 100 higher.
FTSE 100 rallies
As of 12:20 GMT, the FTSE 100 had added 87.32 points to stand 1.23 percent higher at 7,179.75. Today’s recovery follows a rebound in the US on Friday night, with resource stocks currently leading the UK index higher. Evraz (LON:EVR) is currently the Footsie’s biggest gainer in percentage terms, having added 4.56 percent to 348.30p.
“Following the rebound in the U.S. late on Friday and a mixed session in Asia, European indices are pointing to a stronger start to the week,” said Jasper Lawler, head of research at London Capital Group, as quoted by MarketWatch. “With commodities rallying across the board and potential for Brexit-induced weakness in the pound, the FTSE could find itself leading the charge in the European bourses.”
Some investors cautious
Some analysts, however, remain cautious despite today’s rebound.
“If anything, we will be looking to sell into rallies rather than buying into dips,” Daniel Lockyer, senior fund manager at Hawksmoor Investment Management, told Reuters. The newswire quoted Valentin Bissat, European equity strategist at Mirabaud Asset Management, as adding: “We will wait a few more days to see where markets will stabilise before implementing an overweight in our portfolios.”
In individual movers, Barclays (LON:BARC) is underperforming the broader market after the Serious Fraud Office charged the group’s operating arm over the lender’s Qatar fundraising during the financial crisis. Barclays’ shares are changing hands 0.55 percent higher at 193.96p.
The FTSE 100 was 1.24 percent up at 7,180.68 points as of 12:30 GMT on Monday, 12 February 2018.