FTSE rises above 6,000 on Japan interest cut
The bank surprised markets by cutting a benchmark rate below zero, sending markets up. The FTSE 100 closed 152 points higher at 6,059.5.
Traders the move in Japan would dampen expectations of further rate rises by the US Federal Reserve and almost guarantee that the Bank of England will not lift rates.
Oil prices also jumped as hopes rose of a deal by major exporters to cut production to address the global supply glut. At 1640 GMT, Brent crude rose 1.4% to $34.38 per barrel and West Texas Intermediate grew 0.39% to $33.35 per barrel.
Despite today’s rise, the FTSE100 remains well short of its record high of 7,122.74 last April.
Among today’s corporate moves, Sky was 2.6% ahead of James Murdoch’s return as chairman and on strong numbers that showed it was competing aggressively with BT for television and broadband customers.
AG Barr edged higher after the maker of Irn-Bru said it expected to deliver fourth quarter revenue growth in excess of 2.5%, which would be lapping the 5% growth seen in the corresponding period a year prior.
Sainsbury’s was 2.7% higher, on reports that it may not go ahead with another tilt at Argos-owner Home Retail Group which some analysts believe to be an expensive gamble.