FTSE 100 watch: Yellen’s QE stance continues to support Footsie

on Nov 15, 2013
Updated: Oct 21, 2019

iNVEZZ.com, Friday, November 15: The Footsie has advanced for a second day, trimming a loss this week, with investors focusing on comments by US Federal Reserve chair-in-waiting Janet Yellen who yesterday defended the bank’s stock market-friendly quantitative easing programme. Vedanta Resources (LON:VED) has been the standout FTSE 100 loser today after reporting a fall in first-half core earnings and revenue.

**Yellen remarks help Footsie trim loss this week**
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As of 12:31 UTC today, the Footsie had added 22.85 points to be 0.34 percent up at 6,688.98 trimming a loss so far this week. In the US, Federal Reserve Vice Chair Yellen said that the central bank’s bond-buying programme would remain in place for now, dispelling tapering concerns.

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Reuters quoted Mark Priest, a senior trader at ETX Capital, who forecast that the FTSE 100 could hit 7,000 points early next year.
“The only thing that would stop us is early talk of early tapering which seems to be more and more distant,” he pointed out.
Bloomberg quoted John Haynes, head of research at Investec Wealth & Investment, who commented that stocks were “being helped by the direction of the global economy and by the resilience of policy makers”.

“There’s no way policy makers will taper stimulus measures too fast. If they do so, it will be because of a strong recovery,” Haynes added. “The UK and the US have led the recovery, so they may lag the next phase of market appreciation.”
**Footsie winners and losers**
The top FTSE 100 loser today has been Vedanta, whose shares had shed 6.23 percent to 960.19p as of 13:18 UTC. The London-listed miner today posted a net loss of $217 million in the six months through September compared with a profit of $173.6 million a year earlier.

Centrica (LON:CNA) also fell, dropping 2.03 percent to 338.30p. The stock has declined for a second day after the British Gas owner issued a profit warning yesterday.

“On one hand, profits are being eroded by competitive pressures in energy retail and power generation; on the other the politic rhetoric in the media is hostile due to perceived profiteering,” JP Morgan said in a note, as quoted by Reuters. “Until the public and political climate becomes more constructive, we see limited share price upside for either Centrica or (peer) SSE.” Shares in SSE (LON:SSE) were 0.36 percent down at 1,395.00p.

At the other end of the spectrum, Royal Dutch Shell (LON:RDS.A) and Tullow Oil have gained ground, tracking European oil and gas stocks higher. Shares in Shell are currently trading 1.78 percent up at 2,088.50p, whereas Tullow Oil (LON:TLW) has added 1.30 percent to 896.50p.
**The FTSE 100 was 0.44 percent up at 6,695.41 points as of 13:12 UTC on 15 November 2013.**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.
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