FTSE 100 watch: Footsie climbs as post-referendum rebound continues

on Jul 1, 2016

The UK benchmark index has kicked off the third quarter of the year on the front foot, with the post-referendum recovery continuing after Bank of England Governor Mark Carney signalled more stimulus yesterday. Randgold Resources (LON:RRS) meanwhile is outperforming the broader London market, tracking the gold price higher.

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As of 12:29 BST, the FTSE 100 had gained 43.94 points to stand 0.68 percent higher at 6,548.27, rising for a third consecutive session and taking its gains for the week to 6.7 percent. The rise follows a massive two-session selloff after the UK voted to leave the European Union in last week’s referendum.
“Of all the post-Brexit outcomes discussed across the City over the past few months, ‘buying frenzy’ was not one that was viewed as very likely,” Chris Beauchamp, senior market analyst at IG, said, as quoted by the Guardian.

Reuters meanwhile quoted Nathan Sage, Market Analyst at PhillipCapital UK, as saying in a note that the future looked bright for the blue-chip index with possible rate cuts back on the table.
“If cuts do materialise then the lower cost of debt could help boost company’s investment plans, which they may have put on the back burner after Brexit,” he pointed out, adding that “an even weaker pound than we have now will help the largest of the UK’s companies, who mostly do business with the EU, become more competitive on their exports, assuming they can still trade within the single market”.
Randgold Resources has posted some of the biggest gains in today’s session, with the referendum and this week’s market volatility driving investors to safe-haven assets such as gold. Randgold’s share price is currently 3.15 percent better off at 8,675.00p.
**The FTSE 100 was 0.73 percent up at 6,551.96 points as of 12:37 BST on Friday, July 1, 2016.**


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