The FTSE 100 has climbed higher in today’s session, finding support in a weaker pound amid prospects for a rate cut by the Bank of England (BoE). In individual movers, blue-chip housebuilder Persimmon (LON:PSN) is outperforming the market following upbeat analyst comments.
FTSE 100 rallies
As of 12:03 BST, the blue-chip index had added 82.89 points to stand 1.13 percent higher at 7,433.97. Reuters reported today that BoE policymaker Michael Saunders had hinted at a likely interest rate cut scenario, just a week after the bank kept rate cuts off the chart. The news has pressured sterling which has lifted shares in blue-chips with international exposure.
Despite today’s gains, the FTSE 100 is headed toward its first quarterly loss this year.
Persimmon meanwhile is rallying on the back of a note on housebuilders at Jefferies.
“Despite the wide range of implications politically and economically from Brexit, we see the primary risk to the sector as coming from the more radical policies proposed by the Labour leader Corbyn,” the broker pointed out, as quoted by Proactive Investors, adding that among Corbyn’s ‘radical policies’ is a pledge to build 100,000 affordable/local authority homes a year over a five-year period. Persimmon’s share price has added 3.68 percent to 2,143.00p so far today.
Imperial Brands (LON:IMB) has extended the previous session’s slide and is currently trading 2.21 percent lower at 1,758.40p. The group warned on earnings yesterday amid a crackdown on vaping in the US.
Pearson (LON:PSON), which also cautioned on profits yesterday, is also underperforming the broader market. The shares, however, are trading marginally in positive territory and are currently 0.05 percent better off at 740.40p.
The FTSE 100 was 0.95 percent up at 7,421.17 points as of 13:01 BST on Friday, 27 September 2019.