FTSE 100 goes higher as Fed powers surge in mining stocks
On Thursday, British stocks demonstrated a broad-based soar, when the Fed made up its mind to reduce the total number of planned rate increases.
A bit later, market participants will obtain more news from the Bank of England and in particular regarding its long-awaited policy decision.
The FTSE 100 grabbed 0.6%, trading at 6,211.01. The index was mostly boosted by a rally in mining shares. Glencore PLC closed +8.9%, Anglo American PLC soared 10%, and Antofagasta PLC gained up to 7.8%.
In addition to this, oil majors, including Royal Dutch Shell PLC and BP PLC gained 2.4% and 2.6% respectively.
On Wednesday, the Fed left just two rate hikes for this year, compared to the previously planned four. Moreover, current rates remained intact.
Then, the weaker greenback has greatly improved sentiment, in particular the commodity space, amid surging oil. Additionally, the major US dollar index lost 0.9% on Thursday.
The Bank of England is expected to leave the benchmark interest rate intact, so in other words it should remain 0.5%.