FTSE 100 posts best day of gains for 4½ months
City Index April 20, 2011 4:43 PM
<p>The FTSE 100 Index enjoyed its best day for four and a half months as investors bought into heavyweight stocks bulled by some solid earnings across the […]</p>
The FTSE 100 Index enjoyed its best day for four and a half months as investors bought into heavyweight stocks bulled by some solid earnings across the pond and further gains in commodities such as Gold, which hit a new record high of $1500.
It’s been a good news day with demand for stocks spread broadly across most sectors. It was the better than expected earnings from Intel last night that kicked things off, with Asian markets posting gains of 1.6% and this positivity continued into the European open. Tech shares were lifted right across Europe with ARM Holdings benefitting particularly with traders buying strongly into the company’s shares expecting the firm to see similarly strong numbers to that of peer and bellwether Intel.
Similarly strong and forecast beating earnings from Yahoo, IBM and United Technologies have also added to the positive earnings sentiment, boosting investor confidence.
Strong gains in the prices of commodities, helped by the weaker US Dollar, such as Crude Oil and Copper have also lifted demand for heavyweight mining and energy firms. This is where much of the FTSE’s charge has originated from along with bullish tech shares.
Later tonight investors will keep an eye on earnings out from Apple and American Express, where it will be interesting to see whether the former can continue is record performances.
Gold hits new all time record above $1500
The precious metal continued its surge higher today to reach a new all time record high of £1505. $1500 is a crucial psychological barrier that has now been surpassed and so a consolidation above this level could prepare the metal for a further push higher. Considering investor appetite to buy into Gold within the broader context of current inflationary pressures, debt concerns and dollar weakness, there is every chance that the price of Gold could continue to push higher throughout the year.
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