FTSE 100 watch: Footsie steady as investors digest Fed minutes

on Oct 12, 2017

The UK benchmark index has steadied in today’s session, with investors mulling over the minutes from the US Federal Reserve’s latest policy meeting. Burberry (LON:BRBY) meanwhile has soared to the top of the FTSE 100 leaderboard on the back of upbeat analyst comments.

FTSE 100 up after Fed minutes

As of 12:34 BST, the Footsie had added 23.14 points to stand 0.31 percent higher at 7,556.95. Global sentiment has been upbeat in today’s session after the US Federal Reserve signalled that it might hike rates at its policy meeting in December.

“If we do start to see an element of higher rates coming through in the UK […] that’s going to be very good for the UK financials and that will probably lead them to outperform,” Jonathan Roy, advisory investment manager at Charles Hanover Investments, told Reuters.

Individual movers

Burberry has been one of today’s most prominent Footsie risers after Mirabaud Securities lifted its rating on the stock from ‘hold’ to ‘buy,’ forecasting sales growth to come through more forcefully in FY18/19, generating significant margin uplift.

“We believe that new management will succeed in expanding the brand’s customer base thanks to more aggressively designed collections, and a strengthened leather goods offer,” the analysts pointed out, as quoted by Sharecast. Burberry’s share price is 2.87 percent up at 1,900.00p.

Shares in Sky (LON:SKY) have also been in demand today after the company posted an upbeat start to its financial year, having added 160,000 new customers amid strong campaigns in all markets around the most recent season of Game of Thrones. Sky’s shares are currently changing hands 1.81 percent higher at 930.00p.

The FTSE 100 was 0.33 percent up at 7,558.66 points as of 12:48 BST on Thursday, 12 October 2017.