Stocks today: FTSE 100 hits 20-month high, VIX at six-week low
UK stocks powered ahead to a 20-month high on Friday, with investor sentiment buoyed by a series of upbeat global corporate earnings announcements.
European stocks also rallied with the Euro Stoxx 50 heading for the best week since March, as the optimism over companies’ third-quarter financial results eclipsed fears of an energy crisis that had weighed on the market in recent weeks. US equity futures and Asian shares also showed a similar trend.
The CBOE Volatility index, or VIX, a measure of expected fluctuations in US stocks, fell for the fourth day to a six-week low, indicating a steadily improving sentiment and positive risk appetite among investors.
FTSE 100 chart – Credit: TradingViewWhy are stocks up today?
Investor confidence in equities has got a boost after global banking giants including Bank of America, Morgan Stanley and JPMorgan Chase this week announced third-quarter results that surpassed analyst expectations. Market sentiment was also buoyed by expectations that the travel sector is set to reap benefits as pandemic-related restrictions continue to be lifted around the world.
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Market Highlights
- The FTSE 100 was up 0.2% at around 7,232 Friday afternoon in London, after earlier climbing as high as 7,247.3, the highest level since February. The index gained almost 2% this week, on track for the biggest five-day advance since June
- The Euro Stoxx 50 rose 0.3%, taking its weekly gain to 2.7% -- the gauge is on track for the best five-day rise since March
- Brent crude oil hit a new three-year high on Friday, just shy of $85 per barrel, and was set to gain for the sixth consecutive week.
Stock market sentiment improves
- The VIX index fell below 16.56 to a six-week low, reflecting a recovery of investor confidence after the market was weighed down by worries about inflation and an energy crisis in recent weeks
- The US dollar index dropped for a third day, reflecting a decline in demand for safe-haven assets
Top stocks gainers: UK and Europe
- In the UK, the top performing sectors were minerals, transportation and retail
- Evraz, International Consolidated Airlines Group and Ocado Group were the best performing companies in their respective segments
- In Europe, the best gainers were online payment platforms, semiconductors and luxury goods
- Adyen B.V Parts Sociales, ASML NV and Kering led profits in their respective sectors
Top stocks losers: UK and Europe
- On the FTSE 100, consumer services, technology services and consumer non-durables were the segments which took a hit
- Pearson, Informa and Burbery led losses in their respective segments
- On the Euro Stoxx 50, financial services, media and optical equipment were lagging behind
- Santander, Vivendi and EssilorLuxottica were the worst performers in their respective segments
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