FTSE 100 watch: Footsie bounces as commodity prices recover

on Apr 8, 2016

The UK benchmark index has advanced in today’s session, staying on course for a gain this week, with a recovery in commodity prices fuelling demand for London-listed resource stocks. Experian (LON:EXPN) meanwhile has slipped to the bottom of the blue-chip leaderboard after analysts at HSBC turned bearish on the FTSE 100 credit-checking services group.

As of 12:05 BST, the Footsie had added 44.88 points to stand 0.73 percent higher at 6,181.77. The blue-chip index is on track for about 0.5-percent gain this week with higher oil prices propping up shares in BP (LON:BP) and Royal Dutch Shell (LON:RDSA). BP’s share price currently stands 2.33 percent higher at 347.20p, while shares in heavyweight Shell have added 2.28 percent to 1,704.50p.
A recovery in the oil price meanwhile is propping up London-listed miners and Asia-focused lender Standard Chartered (LON:STAN).

“The bank’s exposure to commodities has been flagged in the past and the stock is increasingly looking like a proxy for the sector, outperforming other financial plays as a result,” Tony Cross, market analyst at Trustnet Direct, told Reuters. Standard Chartered’s share price is 1.33 percent better off at 439.55p.
At the other end of the spectrum has been Experian which has plunged deep into the red after HSBC downgraded the stock from ‘buy’ to ‘reduce’ and trimmed its price target from 1,290p to 1,140p. The analysts were quoted as noting that Brazil’s leading banks were working to create a Positive credit bureau, a move which creates significant medium-term uncertainty and will impair market expectations of longer-term growth. Experian’s share price has lost 1.67 percent to 1,234.05p so far today.
**The FTSE 100 was 0.75 percent up at 6,182.75 points as of 12:13 BST on April 8, 2016.**

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