FTSE 100 ascends, with bank stocks soaring after BOJ decision
On Wednesday, British shares pushed higher, led by financial shares because market participants embraced a BOJ monetary policy shift, which should benefit yield-hungry financial institution.
The FTSE 100 tacked on 0.7%, hitting 6,875.63, with only the defensive health care as well as utility sectors losing ground. By the way, the London benchmark acquired 0.3%, reaching 6,830.79 on Tuesday.
Stocks headed north on Wednesday after the BOJ suddenly informed it would start targeting 10-year interest rates, thus committing to keep them around zero as part of its new policy monetary framework for the purpose of bolstering inflation. The BOJ told it’s going to maintain quantitative easing until its inflation objective of 2% is overshot.
London-listed bank stocks leapt, with Barclays PLC soaring 3.8%, Lloyds Banking Group PLC adding 2.4%, and Standard Chartered PLC surging 2%. HSBC PLC edged up 1.4%.