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 Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam