The UK benchmark index has climbed higher in today’s session, clawing back some of the hefty loss posted yesterday, when global markets were gripped by risk-off sentiment, prompted by higher rates prospects and global growth concerns.
FTSE 100 climbs higher
As of 12:34 BST, the Footsie had added 52.89 percent to stand 0.75 percent higher at 7,059.82, having lost nearly two percent in the previous session’s equities selloff. Despite today’s advance the blue-chip index remains on track for a nearly four-percent drop for the week.
“Bargain hunters are active in equities, after US markets moved off their lows and Asia witnessed a positive session,” Chris Beauchamp, market analyst at IG, commented in a note, adding that the Footsie had “found support right on the 6919 lows from February, an eerie reminder of the sell-off at the start of the year”.
“It has continued its recovery and moved back above 7,000,” the analyst continued, adding that “yesterday’s highs at 7,088 could provide some resistance, but a close above here would be a good first step in any recovery”.
Tobacco stocks pressured
Tobacco shares have come under pressure in today’s trading amid worries over possible restrictions on new products. WebFG News further reported that two traders had cited a note from Morgan Stanley mentioning a presentation from the US regulator which proposed reducing nicotine to 0.2mg per cigarette compared to 10-14mg for the average cigarette. Imperial Brands share price is currently 4.22 percent worse off at 2,565.00p, while shares in peer British American Tobacco (LON:BATS) are changing hands 1.64 percent in the red at 3,349.00p.
The FTSE 100 was 0.70 percent up at 7,056.21 points as of 12:53 BST on Friday, 12 October 2018.