The UK benchmark index has jumped in today’s session, finding support in banking and resource stocks. The FTSE 100, however, came under pressure earlier in the week, with worries over a trade war between the US and China weighing on investor sentiment in previous sessions.
FTSE 100 gains ground
As of 12:37 BST, the Footsie had added 74.78 points to stand 0.99 percent higher at 7,631.22. The blue-chip index has found support in banking shares as the vote in yesterday’s Bank of England (BoE) policy meeting fuelled expectations for an upcoming rate hike. Part government-owned Royal Bank of Scotland (LON:RBS) is currently leading the sector higher, having gained 1.68 percent to 261.21p, while bailed-out peer Lloyds Banking Group (LON:LLOY) is 1.08 percent higher at 62.02p.
Resource stocks have also been in demand, tracking oil prices higher. Glencore (LON:GLEN) is the sector’s biggest riser in percentage terms, trading 2.06 percent higher at 379.25p.
Trade tensions and OPEC in focus
Today’s advance comes after the blue-chip came under pressure earlier during the week, following the BoE meeting and amid the ongoing trade tensions between the US and China.
“Trade tensions remain the dominant theme, clarity still lacking about how far things will ultimately go between US and China, and the potential ripple effect for world trade,” Mike van Dulken and Artjom Hatsaturjants at Accendo Markets commented, as quoted by Reuters.
Investors are also eyeing the OPEC meeting in Vienna today. Proactive Investors quoted Neil Wilson of Markets.com as commenting that “it looks as if some kind of production hike is likely, but it should be fairly limited in order to avoid a price shock”.
The FTSE 100 was 1.25 percent up at 7,650.53 points as of 15:03 BST on Friday, 22 June 2018.