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 French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Read More
Wealth Manager on Twitter