By Patrick Munnelly, Market Analyst, Tickmill
The FTSE 100 is in the green for a fourth consecutive session, closing up 39 points to 7824.84.
Upside in crude oil and associated names fuelled the push higher with BP LON:BP. and Shell LON:SHEL helping support the buoyant tone early on.
Yesterday’s performer Glencore LON:GLEN has seen further follow through today on acquisition hopes adding another +2.4%. However, after a solid performance yesterday, industrial miners have lagged today with a sharp decline in Steel futures weighing on Rio Tinto LON:RIO -0.63%, Anglo American LON:AAL -1.24% & Fresnillo LON:FRES coming in near the bottom of the board, shedding 2.63% on the session.
UK economy forecast upgraded
From a fundamental perspective UK investors also cheered a more upbeat perspective from the International Monetary Fund (IMF). The Washington based think tank have upgraded their forecasts for the UK economy with output expected to turn positive next year by 1%,. Although improved, the UK still lags its G7 counterparts, with the only other economy expected to show contraction this year being Germany.
In pre-released comments ahead of a speech later today the Governor of The Bank of England, Andrew Bailey has restated his belief that he doesn’t believe that markets face a systemic banking crisis. The Governor affirms that by ensuring financial stability which takes into account financial conditions, systemic instability can be avoided.
