FTSE 100 keeps soaring on BoE boost
On Friday, British stocks pushed toward a fresh yearly peak, still enjoying a high from the BoE’s quite aggressive stimulus measure, while the US jobs report due later might provide traders with fresh signals.
The FTSE 100 soared 0.3%, being worth 6,761.72, a value that’s above the 2016 closing peak of 6,750.43 achieved on July 27. The index found itself on track for a weekly growth of 0.9%.
On Thursday, the benchmark leapt 1.6% after the UK’s major financial institution dropped its key interest rate to a record minimum of 0.25%. Additionally, it also expanded its quantitative easing program and stressed it’s on the verge of purchasing up to £10 billlon in corporate bonds. These moves kicked in after data unveiled slowing in the British economy after Brexit.
The BOE action is reportedly expected to ensure a positive platform for the FTSE 100 over the remainder of this year.
It might sound weird at first especially when considering that confidence in the British economy is currently weakening.