FTSE 100 watch: Footsie rises as investors digest Yellen speech

on Jun 7, 2016
Updated: Mar 11, 2020

The UK benchmark index has advanced in today’s session with comments by Federal Reserve Chair Jane Yellen buoying sentiment. A rise in heavyweight Royal Dutch Shell (LON:RDSA) is also propping up the FTSE 100 after the Anglo-Dutch energy giant updated investors on its strategy.

As of 12:40 BST, the Footsie had added 29.10 points to stand 0.46 percent higher at 6,302.50. Sentiment has been upbeat today after Fed Chair Janet Yellen insisted that the US central bank needed to raise rates, but refrained from giving a timeframe for any potential rate hikes.
“Given the poor data set, she appears to be giving a clear signal to the market that with Brexit worries and the recent poor data, a rate hike looks off the cards for June,” said Ana Thaker, Market Economist at PhillipCapital UK, as quoted by Reuters.

Shell meanwhile has climbed to the top of the blue-chip leaderboard after unveiling steeper cost cuts following its acquisition of BG Group earlier this year. The oil major further said that it would leave up to 10 countries and would offload up to 10 percent of its oil and gas production. Shell’s shares are changing hands 2.67 percent higher at 1,746.50p.
Coca-Cola HBC (LON:CCH) is also outperforming the broader London market after analysts at Credit Suisse hiked their price target on the stock in the wake of the bottler’s investor seminar yesterday. The Swiss bank was quoted as pointing to the prospect for better pricing in Russia, easing deflation across Europe and the ‘good work’ carried out by management on the group’s cost base. Coca-Cola HBC’s share price currently stands one percent higher at 1,408.00p.
**The FTSE 100 was 0.40 at percent up at 6,298.54 points as of 12:52 BST on Tuesday, June 7, 2016.**