London close: Stocks edge up as Powell speech lifts markets
London stocks closed in the black on Friday, boosted late in the day by Federal Reserve Chair Jerome Powell’s speech at the virtual Jackson Hole symposium.
The FTSE 100 ended up 0.3% at 7,148.01, having been flat for most of the day ahead of Powell’s comments.
Powell signalled earlier that the US central bank is on track to start tapering asset purchases later in the year if the economy continues to show progress. He said the US economy had reached the point where it no longer needs monetary support, but also indicated there are no plans to raise interest rates any time soon.
Powell said: "At the FOMC’s recent July meeting, I was of the view, as were most participants, that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace of asset purchases this year.
"The intervening month has bought more progress in the form of a strong employment report for July.
"The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate lift off."
CMC Markets analyst Michael Hewson said: "The clear delineation between the Fed's inflation mandate and its employment mandate, has reassured markers. Additionally, the reinforcement of the message that tapering is not tightening, and merely a reflection of the improvement in the economy has helped reassure markets that the central bank is not going to be hasty in removing accommodation.
"This message has helped deliver the FTSE 100 to a positive week, with basic resources leading the gainers."
On the downside, Just Eat Takeaway shares slumped after the New York City Council approved legislation to cap commissions delivery apps can charge restaurants.
The new bill, which was approved on Thursday, limits the amount that delivery apps such as Uber Eats, DoorDash and GrubHub - which is owned by Just Eat Takeaway - can charge to 15% of food orders. The new measure will also stop food delivery companies from charging more than 5% for marketing.
Market Movers
FTSE 100 (UKX)7,148.010.32%
FTSE 250 (MCX)24,059.720.45%
techMARK (TASX)4,847.120.31%
FTSE 100 - Risers
Anglo American (AAL)3,084.00p3.01%
Antofagasta (ANTO)1,462.00p2.42%
Pershing Square Holdings Ltd NPV (PSH)2,590.00p2.37%
Glencore (GLEN)332.55p2.29%
BHP Group (BHP)2,280.00p2.15%
BP (BP.)302.50p2.01%
Evraz (EVR)595.80p1.99%
Rio Tinto (RIO)5,404.00p1.66%
Royal Dutch Shell 'A' (RDSA)1,453.80p1.51%
Melrose Industries (MRO)168.45p1.51%
FTSE 100 - Fallers
Just Eat Takeaway.Com N.V. (CDI) (JET)6,407.00p-7.49%
Sainsbury (J) (SBRY)310.30p-2.94%
Ocado Group (OCDO)2,038.00p-1.40%
CRH (CDI) (CRH)3,876.00p-0.87%
Royal Mail (RMG)490.00p-0.83%
Flutter Entertainment (CDI) (FLTR)14,260.00p-0.80%
Smith & Nephew (SN.)1,401.00p-0.74%
Next (NXT)7,962.00p-0.70%
ITV (ITV)117.60p-0.63%
National Grid (NG.)937.90p-0.60%
FTSE 250 - Risers
PureTech Health (PRTC)349.50p7.48%
Trustpilot Group (TRST)410.00p3.80%
Ferrexpo (FXPO)386.60p3.42%
Grafton Group Ut (CDI) (GFTU)1,412.00p3.07%
Tullow Oil (TLW)45.43p2.74%
Harbour Energy (HBR)369.20p2.61%
Hammerson (HMSO)35.83p2.61%
Coats Group (COA)75.90p2.57%
Avon Protection (AVON)1,891.00p2.55%
Oxford Instruments (OXIG)2,680.00p2.49%
FTSE 250 - Fallers
Just Eat Takeaway.Com N.V. (CDI) (JET)6,407.00p-7.49%
Moonpig Group (MOON)389.60p-2.84%
Euromoney Institutional Investor (ERM)1,060.00p-2.23%
Games Workshop Group (GAW)11,740.00p-1.84%
Convatec Group (CTEC)223.70p-1.58%
Hays (HAS)161.20p-1.35%
TUI AG Reg Shs (DI) (TUI)316.50p-1.12%
Ascential (ASCL)412.00p-1.10%
FDM Group (Holdings) (FDM)1,264.00p-1.10%
Moneysupermarket.com Group (MONY)251.60p-1.02%