Stock markets: UK stocks advance as investors look forward to US Fed policy decision
08:35, 16 March 2022
UK stocks climbed up as the FTSE 100 Index was boosted by mining and finance stocks, as investors looked forward to the US Federal Reserve’s much-anticipated policy decision, due for later in the day.
European stocks reflected the same upbeat sentiment, with the EURO STOXX 50 Index rising, as investors speculated that the US Federal Reserve would be raising interest rates, which would make it the first time in approximately three years.
Overnight in Asia, Hong Kong’s Hang Seng Index rose, along with the US S&P 500 Index.
What’s interesting today: IG Group announced that it expected its full-year revenue to slightly exceed market expectations, but warned of slower growth across its US branch. Hyve Group became the latest to announce that it would either be exiting Russia completely, or thoroughly reviewing its operations there.
Why are stocks up today?
US policy decision: Investors looked forward to the US Federal Reserve’s policy meeting due for later in the day.
What is your sentiment on UK100?
- What this means: The US Federal Reserve is speculated to raise interest rates for the first time in three years, which would go a long way in helping inflation that has been soaring to multi-year highs in the last few years. Investors are also looking forward to increased guidance on monetary policy tightening, which would be especially relevant in the turmoil and uncertainty that the Russia-Ukraine invasion has inflicted on global markets and economies recently.
Stock markets: key highlights
- The FTSE 100 Index inched up 1.24% to 7,264.8 points
- The EURO STOXX 50 Index climbed up 2.15% to 3,818.5 points
- Germany’s DAX Index edged up 2.09% to 14,208.3 points
- France’s CAC 40 Index rose 2.11% to 6,489.3 points
- The leading sectors were consumer services and finance, whereas mining and consumer non-durables took a hit
- The US S&P 500 Index inched up 0.78% to $4,287.0.
Market sentiment
- The Cboe Volatility Index, or VIX, a measure of expected fluctuations in US stocks, dropped to 28.83
- The US Dollar Index inched lower to $98.73
- The US 10-Year Bond Yield Index traded flat at 2.149%.
Top stock gainers: UK and Europe
- The top stock gainers in the UK were Pearson (PSON), London Stock Exchange Group (LSE) and M&G (MNG)
- Pearson stock rallied approximately 20% as investors hoped for a private equity offer
- London Stock Exchange Group shares gained following the company announcing its venture into global private markets
- M&G shares inched up following the company recently appointing a new board chair
- The best-performing companies in Europe were Adyen BV Parts Sociales, Mercedes-Benz Group and Ahold Delhaize (AD)
- Adyen BV Parts Sociales shares gained following the company receiving an ‘outperform’ rating by Credit Suisse recently
- Mercedes-Benz Group stock rallied following the recent launch of a new battery plant
- Ahold Delhaize shares edged up following the company recently starting its annual start-up programme.
Top stock losers: UK and Europe
- The worst-performing companies in the UK were Polymetal International (POLY), ITV (ITV) and Burberry (BRBY)
- Polymetal International shares dipped following the company losing six of its board members recently
- Burberry (BRBY) shares dipped following the company also exiting from Russia
- The top stock losers in Europe were SAP (SAPd), Danone (BN) and Munich Re (MUV2)
- SAP shares fell following Ukraine’s President Zelensky adding pressure on software companies to be harsher on Russia
- Danone recently launched a new strategic plan
- Munich Re recently announced a new partnership with Netradyne.
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