AGL 38.89 Increased By ▲ 0.41 (1.07%)
AIRLINK 203.39 Increased By ▲ 0.37 (0.18%)
BOP 10.05 Decreased By ▼ -0.12 (-1.18%)
CNERGY 6.44 Decreased By ▼ -0.10 (-1.53%)
DCL 9.46 Decreased By ▼ -0.12 (-1.25%)
DFML 39.70 Decreased By ▼ -0.32 (-0.8%)
DGKC 98.85 Increased By ▲ 0.77 (0.79%)
FCCL 35.41 Increased By ▲ 0.45 (1.29%)
FFBL 88.39 Increased By ▲ 1.96 (2.27%)
FFL 13.90 No Change ▼ 0.00 (0%)
HUBC 130.50 Decreased By ▼ -1.07 (-0.81%)
HUMNL 13.91 Decreased By ▼ -0.11 (-0.78%)
KEL 5.48 Decreased By ▼ -0.13 (-2.32%)
KOSM 7.57 Increased By ▲ 0.30 (4.13%)
MLCF 46.18 Increased By ▲ 0.59 (1.29%)
NBP 61.85 Decreased By ▼ -4.53 (-6.82%)
OGDC 220.97 Increased By ▲ 0.21 (0.1%)
PAEL 39.68 Increased By ▲ 1.20 (3.12%)
PIBTL 8.75 Decreased By ▼ -0.16 (-1.8%)
PPL 198.50 Increased By ▲ 0.62 (0.31%)
PRL 39.40 Increased By ▲ 0.37 (0.95%)
PTC 25.75 Increased By ▲ 0.28 (1.1%)
SEARL 106.78 Increased By ▲ 3.73 (3.62%)
TELE 9.11 Increased By ▲ 0.09 (1%)
TOMCL 36.40 Decreased By ▼ -0.01 (-0.03%)
TPLP 13.80 Increased By ▲ 0.05 (0.36%)
TREET 25.30 Increased By ▲ 0.18 (0.72%)
TRG 57.71 Decreased By ▼ -0.33 (-0.57%)
UNITY 33.55 Decreased By ▼ -0.12 (-0.36%)
WTL 1.72 Increased By ▲ 0.01 (0.58%)
BR100 11,929 Increased By 38.5 (0.32%)
BR30 37,311 Decreased By -45.1 (-0.12%)
KSE100 110,765 Decreased By -305.3 (-0.27%)
KSE30 34,821 Decreased By -87.8 (-0.25%)

LONDON: Defence and energy stocks led a recovery in UK’s blue-chip FTSE 100 from near three-week lows on Wednesday, while investors also braced for likely interest hikes from the US Federal Reserve and the Bank of England.

The benchmark FTSE 100 rose 0.6%, while the domestically focussed mid-cap index added 1.0%.

Oil majors BP and Shell climbed after Russian President Vladimir Putin announced a partial military mobilisation, raising the prospect of higher crude prices for longer on tighter supply concerns. Oil prices jumped before giving up gains on dollar strength.

Britain’s biggest defence company BAE Systems jumped 4.3%, tracking its European peers, after Putin’s remarks.

“Investors will be looking at defence stocks and thinking about the potential that governments will look to increase their spend on weapons and on military hardware,” said Danni Hewson, financial analyst at AJ Bell.

Also benefiting internationally focussed firms was a dip in sterling to its lowest against the US dollar since 1985 following Putin’s move.

Housing stocks rose 3.2% after a report said that newly appointed Prime Minister Liz Truss will announce plans to cut the stamp duty on property tax in the government’s mini-budget this week.

Nevertheless, worries of a global economic slowdown lingered ahead of an expected 75-basis-point interest rate hike by the Fed at 1800 GMT.

Financial markets expect the BoE to follow suit on Thursday, pricing in a 91% chance of a 75 bps increase in rates to 2.5%.

“Markets are not quite sure what to expect from the BoE because you’ve got the UK Government about to borrow a huge chunk of additional cash, the expectation that the economy is already in recession and a situation where the BoE cannot cut rates,” said Hewson.

Banks, which usually rise in a high interest rate environment, lost 1.5% in the run up to the meeting.

Comments

Comments are closed.

Hasnain Sep 23, 2022 12:42am
I want to earn money for myself or for yourself so I wants to purchase shares if any budy want to sale please contact me +923078832393 my WhatsApp
thumb_up Recommended (0)