FTSE 100 watch: Bank of Japan policy move buoys Footsie

on Sep 21, 2016

The UK benchmark index has gained ground today, with investors cheering the Bank of Japan’s (BOJ) move to overhaul its monetary policy, while also awaiting the outcome of the US Federal Reserve’s policy meeting later today. In individual stock news, Polymetal (LON:POLY), the newest addition to the FTSE 100, has advanced after analysts at Berenberg hiked their price target on the shares.

As of 12:39 BST, the Footsie had added 23.32 points to stand 0.34 percent higher at 6,854.11, after the BOJ said that it would adopt a target for long-term interest rates in an effort to overhaul its monetary stimulus programme.
“There’s a follow through from the BOJ statement today, so financials are bid on that. The yield curve benefit from Japan in the banks today is quite a strong one,” Zeg Choudhry, managing director of LONTRAD, told Reuters. “The market was pretty tired of the lack of benefit from existing policies. So they had to do something different.”
Barclays (LON:BARC) is leading other financials higher, having added 3.51 percent to 172.30p, further benefitting from a rating upgrade at HSBC. Royal Bank of Scotland (LON:RBS), however, has bucked the trend after the Financial Times reported that Santander had pulled out of talks to buy its Williams & Glyn unit. Shares in the bailed-out lender are currently changing hands 0.15 percent higher at 183.98p, underperforming the broader market, having traded about 1.4 percent lower earlier in the session.
Polymetal’s share price meanwhile has added 0.39 percent to 1,039.00p as Berenberg hiked its price target on the stock from 1,035p to 1,200p after the company was readmitted to Britain’s premier index this week. Sharecast quoted the analysts as commenting that they expect the group “to outperform the Gold Equity Index over a two-month period based on previous performance”.
**The FTSE 100 index was 0.29 percent up at 6,850.91 points as of 13:00 BST on Wednesday, September 21, 2016.**

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