FTSE 100 update: Markets bounce back after US Federal Reserve chair says said she expects the Fed to start raising rates
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Markets bounced back sharply today after US Federal Reserve chair Janet Yellen said she expects the Fed to start raising rates by the end of the year.
The FTSE 100 Index added 111.2 points, or nearly 2%, to 6072.7, after a 70-point fall in the previous session. Germany's Dax and France's Cac 40 were up by more than 2% in early trading.
It comes at the end of a volatile week amid market jitters over the state of the global economy, with London's top-flight collapsing below the 6,000-mark with a 3% drop on Wednesday on latest fears over China and the Volkswagen emissions scandal.
The Fed's decision not to lift rates this month has added to anxiety but Ms Yellen's remarks that global weakness will not be significant enough to alter plans for a rate rise removed some of the uncertainty facing markets.
Commodities stocks hardest hit by the recent volatility led the risers, with Glencore up 6% or 6.3p to 104.9p. Also in the mining sector, Antofagasta added 18.2p to 529.8p while Anglo American was up 20.3p to 644.9p.
The recent turmoil has helped buoy demand for gold - and gold miners - but these slipped back in the latest session. The only two fallers on the FTSE 100 were Randgold Resources, down 22.5p to 3923.5p and Fresnillo off 2p at 619p.
Meanwhile tool and equipment firm HSS Hire rose 5% after it announced that chief executive Chris Davies was stepping down, a month after issuing a profit warning as it reported a widening half-year loss. Shares added 2.8p to 61.2p.
Belfast Telegraph Digital