The FTSE 100 consolidated its position above 7,000 once again on Tuesday, up by 0.31% during the morning session, or 21.67 points. US stocks rallied hard on Monday, while Japan’s Nikkei 225 produced a notable comeback on Tuesday.
“Well that didn’t last too long. After getting into a lather about the accelerated timetable for potential interest rate hikes announced by the US Federal Reserve last week, markets seem to have regained their poise,” says AJ Bell investment director Russ Mould.
“The catalyst seemed to be messaging from Fed officials which softened the hawkish tone of last Wednesday’s meeting, plus also a realisation that any rate increases are still two years away.”
“Meanwhile the dollar fell overnight and yields on long-term bonds were rising once again, leaving the past few days’ volatility looking like a brief hiccup rather than a major speed bump for markets. Oil prices are on the march once more on supply concerns, helping to lift index heavyweights BP and Royal Dutch Shell and fuelling the FTSE 100’s rise.”
Commercial property landlords British Land and Land Securities were also up strongly on recovery hopes as the former confirmed plans to commence construction on a new tower block in east London.
FTSE 100 Top Movers
Heading up the FTSE 100 during the Tuesday morning session is Land Securities (4.44%), British Land (4.28%) and Royal Dutch Shell (2.68%).
At the other end of the index is Just Eat (-2.24%), DS Smith (-2.27%) and Hargreaves and Lansdown (-2.07%).