The FTSE 100 recorded another record closing peak on Friday, since Jerome Powell said that changing economic risks can justify a reduction in the interest rate in the United States.
The FTSE 100 index closed 12.20 points, 0.1%, at 9,321.40. Previously quoted up to 9,357.51.
The FTSE 250 ended with 259.39 points, 1.2%, at 22,077.23 and the AIM All-Share finished 6.17 points higher, 0.8%, at 765.03.
For the week, the FTSE 100 increased 2.0%, the FTSE 250 advanced 1.5%and the AIM All-Share rose 0.6%.
In an acute speech, the president of the Federal Reserve, Jerome Powell, left the door open to a reduction of interest rates at its September meeting, noting that a balance of “changing” economic risks can guarantee such movement.
Speaking in the economic symposium Jackson Hole, Powell said: “The reference perspective and the changing balance of risks can justify adjusting our policy position.”
But he added that “the stability of the unemployment rate and other labor market measures allow us to proceed carefully as we consider changes in our policy position.”
Padhraic Garvey at the ING commented: “President Powell could have been super balanced, or even aggressive. But he effectively decided to support the market discount for a phase of rate reduction ahead. He has had a enough reaction.
In New York, the Dow Jones industrial average shot 2.0%, as did the Nasdaq compound, while the S&P 500 increased 1.6%.
In the labor market, the president of the Fed said that although “it seems to be in balance, it is a curious balance type that results from a marked deceleration both in supply and in the demand for workers. This unusual situation suggests that the downward risks for employment are increasing.”
In rates, Powell said a “reasonable base case” is that they create a “unique” change in the price level, although he added that these effects will take time to work completely on the economy.
“In the short term, the risks for inflation are inclined up and risks for employment to disadvantage, a challenging situation,” Powell said.
“With policy in restrictive territory, the reference perspective and the changing balance of risks can justify adjusting our policy position,” he added.
While the shares increased, the dollar fell, while the yields of the American bonds decreased.
Libra increased to US $ 1,3539 on Friday afternoon in London, compared to US $ 1,3426 at the closing of shares on Thursday.
The euro met at $ 1,1726, higher against US $ 1,1619. Against Yen, the dollar was quoted lower than 146.61 yen compared to 148.21 yen.
In Europe, CAC 40 in Paris ended with 0.5%, while Dax 40 in Frankfurt closed 0.3%.
The 10 -year Treasury performance. UU. It was 4.26%, it was reduced from 4.34%. The treasure performance of 30 years from the United States was 4.87%, cut of 4.94%.
In London, trade recovered from a slow beginning supported by the news that the confidence of the United Kingdom consumer improved in August, driven by the last reduction of interest rates, although uncertainty about the possibility of future fiscal increases and inflationary pressures weighed expectations in the future.
The GFK consumer trust index increased to less 17 in August from least 19 in July, above the consensus prognosis cited by FXStet of Minus 20.
Consumer expectations for your personal financial situation in the next 12 months increased to more than 5 in August from more 2 in July, while expectations for the general economic situation in the next 12 months decreased to less than 30 from least 29.
Neil Bellamy, director of consumption of consumption of GFK, said: “The biggest changes in August are in confidence in personal finances, with the scores looking back and in advance one year each for three points.
“This is probably due to the reduction of August 7 of the Bank of England in interest rates, providing the lowest cost of loans for more than two years.”
AJ Bell Investment analyst Dan Coatsworth, said the slight increase is the “good news” for retailers, hospitality and travel businesses, but “no one will be carried away since this is just a case of people who feel a little less bad instead of being really optimistic about the economic perspective.”
In the FTSE 100, the profits were wide -based with the banking standard centered on the Asian rented to lead the road, an increase of 4.2%, while Persimmon and Berkeley housing builders rose 2.3% and 2.2% respectively, and the owner of British Airways, IAG, added 2.3%.
In FTSE 250, Wh Smith recovered from 11%, recovering a small portion of the dramatic 42% fall on Thursday following the reduced orientation after an accounting error.
Morgan Advanced Minerals rose 3.6% after Vesubio agreed to buy its molten metal systems business for a total business value of £ 92.7 million.
In addition, the manufacturer of carbon and ceramic materials based in England, said he has ordered Investte Bank to launch the third section of his repurchase of continuous actions immediately after completing the second section.
Each section to date has been for up to £ 10 million, under a total repurchase program for up to £ 40 million.
Revolution Beauty jumped 20% when he announced the return of his co -founders to the business after finishing his formal sales process.
The news occurred when the company promised to reduce costs amid sales and profitability, and raised £ 15 million through placement and subscription.
This includes the cornerstone investment of makeup co -founders, Tom Allsworth and Adam Mint, and their greatest shareholder, Boohoo, now quote how they must.
Among them, Cornerstone investors have just under 58% of the shares of Revolution Beauty, and Boohoo has a 27% participation.
AllSworth will intervene as executive director during the “next few days,” said the firm, with Colin Henry resigning as an interim executive director at that time, while I will also return to the business in a consulting capacity.
A Brent barrel quoted 67.59 US dollars on Friday night, compared to 67.13 US dollars on Thursday. Gold exceeded up to 3,375.22 US dollars an ounce against 3,343.46 US dollars.
The greatest elevators in the FTSE 100 were Standard Chartered, more than 57.0 Pens 80.0p in position 3.
The greatest ftse 100 faults were the American British tobacco, below 78.0PA 4,315.0p, Coca-Cola Europacific Down 120.0 Pence at 6,710.0p, Coca-Cola HBC, 52.0Pa 3,892.0p, Tesco, 5.2PA 426.3py National Grid, below 10.5Pa 10.5Pa 10.5Pa 10.5.5.5.0p.
The financial markets in London are closed on Monday for the August bank holiday.
Later in the week, the results are due to the prudential insurer and the sports retailer JD Sports Fashion.
The global economic calendar on Monday has the German IFO Business Climate Report and the new US housing sales figures.
Contributed by Alliance News.
