Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and 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 Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter