HSBC, Glaxo push FTSE back near 13-year highs
Britain’s benchmark equity index rebounded back towards near 13-year highs on Tuesday, led by gains in heavyweight bank HSBC and pharmaceuticals group GlaxoSmithKline. While some traders felt a near-term pullback was possible, many said the equity market’s longer-term upwards trend remained intact, buoyed by pledges of monetary stimulus from major central banks.
Britain’s benchmark equity index rebounded back towards near 13-year highs on Tuesday, led by gains in heavyweight bank HSBC and pharmaceuticals group GlaxoSmithKline.
While some traders felt a near-term pullback was possible, many said the equity market’s longer-term upwards trend remained intact, buoyed by pledges of monetary stimulus from major central banks.
The blue-chip FTSE 100 closed 1.6 per cent, or 107.67 points, higher at 6,762.01 points.
The FTSE hit its highest level in nearly 13 years last week but then fell 2.7 per cent in two days after the US Federal Reserve said it was considering exit strategies from its economic stimulus programme.
The Bank of Japan and European Central Bank, however, have indicated in recent days that they plan to maintain stimulus and that has helped reassure investors.
Darren Easton, director of trading at Logic Investments, advocated using days when the market fell to buy up stocks at relatively cheap prices, rather than placing “short” trades to bet on a more prolonged market fall.