The FTSE 100 had a relatively calm day on September 27, 2024, with a gentle rise of 0.4%, landing at 8,295. What’s pushing this uptick? Well, thanks to some positive vibes coming out of China, particularly their new economic stimulus plans, mining stocks are riding the wave! Investors seem to be soaking up the optimism from these measures, which are giving global markets a little boost. The mining sector, especially, is making the most of this good news, keeping the FTSE on stable ground.
China’s recent moves to prop up its economy, including reducing the reserve requirement ratio for banks, have bolstered commodities and miners. The Hang Seng index surged 12% this week, lifting shares in FTSE-listed mining companies like Anglo American and Glencore, which have benefitted from rising copper and metal prices. This resurgence in demand for raw materials is providing much-needed support for the FTSE 100, particularly as energy stocks lag.
Meanwhile, oil heavyweights Shell and BP are dragging down the index. Both companies saw shares fall by over 4% following reports that Saudi Arabia may abandon its unofficial $100 per barrel price target for crude oil. This has pushed Brent crude prices lower, now sitting around $71 per barrel, further weighing on the performance of energy stocks
A sense of caution is hovering over the FTSE 100, with plenty of uncertainty about China’s recovery and those pesky oil prices that just keep bouncing around. Investors are keeping a close eye on these factors, which means the overall outlook for the FTSE remains a bit shaky. Sentiment is still influenced by these big global shifts, and it’s making traders tread carefully. Traders are also eyeing upcoming U.S. consumer confidence data, which could further sway the market’s direction.
In the near term, FTSE 100 investors should watch for any developments in oil prices and China’s economic policies, as these will be key drivers for the index’s performance.
This post was last modified on Sep 27, 2024, 07:47 BST 07:47