Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Draghi drags FTSE higher with stimulus remarks

Draghi drags FTSE higher with stimulus remarks

The FTSE 100 has risen as investors anticipated further stimulus action from the European Central Bank (ECB) after a dovish speech from president Mario Draghi.

Draghi told a global central banking conference on Friday he was prepared to respond with 'all the available instruments needed' should inflation remain defiantly low. The ECB in June cut interest rates and launched a €400 (£318) billion lending package to stimulate the eurozone economy, but has so far shied away from a money-printing quantitative easing programme.

Speaking on Friday, Draghi acknowledged the eurozone's economy remained 'uniformly weak' and that while he was confident June's measures would bear fruit, 'we stand ready to adjust our policy stance further'.

'The [ECB's] governing council will... within its mandate use all the available instruments needed to ensure price stability over the medium term,' he said.

The FTSE 100 added 25 points, or 0.4%, to 6,800, playing catch-up with European markets, which rose on Monday. US markets also rose on Draghi's comments, with the S&P 500 briefly breaching the 2,000 mark for the first time.

RSA Insurance (RSA) topped the FTSE 100 leaderboard, rising 2.5% to 447.9p after analysts at Bank of America Merrill Lynch upgraded the stock to 'buy' from 'neutral'.

WPP (WPP) jumped 1.6% to £12.47 after the advertising group announced first-half results slightly ahead of forecasts.

Bunzl (BNZL) meanwhile rose 0.9% to £16.45 as the business supplies distributor also beat investor expectations with a strong first half of the year, and announced the acquisition of four businesses.

Antofagasta (ANTO) was the biggest faller, dropping 3.3% to 780.6p after announcing a 11.5% fall in profits in the first half of the year due to higher production costs and lower copper prices. Petrofac (PFC) fell 2.7% to £10.96 after its first half profits nearly halved.  

'Mid cap' stock Regus (RGU) tumbled 6.9% to 182.9p after the office provider said it expected to open at least 450 business centres this year, as investors worried about the impact on short-term profits.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter