Britain’s benchmark stock market index climbed to its highest level in four months on Tuesday, pulled up by a robust mining and banking stocks.
London’s Financial Times Stock Exchange 100 index jumped 23.23 points or 0.4 percent to 6,376.75 points, reaching the high of 6,418.25 which is the new highest level for 2016 since December 2015.
According to a chief strategist, “Weve had a commodity-driven rally since February. However, there is a danger that there may be a pullback soon, given the lingering uncertainty over the Brexit vote in June on Britains membership of the EU.”
The Financial Times Stock Exchange 100 surged around 3 percent since the beginning of 2016, but stays nearly 20 percent below a record peak of 7,122.74 points hit in April 2015.
However, the index dropped from its high and underperformed euro zone shares. Sterling gained against the euro and the greenback after report indicated a healthy lead for the IN campaign ahead of June’s referendum on EU membership.
Due to that, British stocks grew and became more expensive for foreign currency holders and crimped stocks with global exposure.
As stated by a market analyst, “A weak dollar definitely has an impact, and a lot of FTSE companies have a lot of business outside the UK.”
Meanwhile, German DAX 30 rallied 2.3 percent to 10,355.62, while France’s CAC 40 soared 1.0 percent to 4,553.44.
In Asia, equity markets also edged higher with Japan’s Nikkei 225 Stock Average inching up 3.7 percent to end at 16,874.44 after a steep plunge on Monday.
Hong Kong’s Hang Seng index advanced 1.3 percent to 21,436.32, while South Korea’s Kospi added 0.1 percent to 2,011.36. China’s Shanghai Composite Index surged 0.3 percent to 3,042.82, as Australia’s Standard & Poor ASX 200 rose 1 percent to 5,188.80.
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