FTSE Rallies, Fed Official’s Stance Calms Concerns Over China

The FTSE 100 rose on Thursday, recouping the previous session’s fall, as hopes of lower U.S. rates for longer helped spur markets which had been rocked by concerns over Chinese growth.

Britain’s FTSE 100 was up 136 points, or 2.3 percent, at 6,115.36 by 1108 GMT, shadowing gains made on Wall Street and in Chinese stocks. It was broadly in line with the pan-European FTSEurofirst 300 index, up 2.7 percent.

Federal Reserve official William Dudley said that an interest rate hike next month seems less appropriate given the threat posed to the U.S. economy by recent market upheavals.

Those have sent Britain’s FTSE 100 down over 9 percent so far in August, set for its biggest monthly loss since October 2008. It fell 1.7 percent in the previous session.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.