FTSE soar amid dropping commodity shares
On Friday, British stocks surged, recovering from a three-and-a-half year dip, raised by comeback for commodities shares.
The FTSE 100 traded at 5,627.52 with a 1.7% rise. Oil, gas and mining companies lead all sectors higher. That’s undoubtedly a positive dynamics of London’s FTSE 100.
Meanwhile, platinum and iron ore producer Anglo American PLC went up 10%, while trader and commodities miner Glencore PLC acquired 6.7%. As for oil key BP PLC it managed to gain up to 3.7%.
Abrupt falls in earlier sessions simply mean that the FTSE 100 is simply trying to make up for its weekly 3.9% dip. So far this year, FTSE has lost 9.9%. For instance, in 2015 it sagged 4.9%.
Thursday’s 2.4% drop left FTSE 100 at its lowest since July 2012. The sell-off tracked the world rout in shares, powered by concerned regarding the health of banks as well as ongoing weakness in crude oil prices.
On Friday, oil was making its way somewhat higher than recent dips, and it’s going to be helping sentiment for shares, though in general, the fundamentals haven’t changed. It feels like investors are focused on bargain hunting. It’s unlikely that the market is turning its back on the lower run.