Markets on the rise after US comments

THE London markets closed higher as dovish comments from the Federal Reserve helped to bolster the European markets.

The FTSE 100 closed 15.61 points higher at 7,508.7 points at the end of trading yesterday.

The Dow Jones opened higher alongside the key European indices after New York Fed president John Williams appeared to suggest that interest rates would be cut at the first sign of a slowdown.

Conor Campbell, financial analyst at Spreadex, said: “With the question now turning to how deep the rate cut will be, rather than the likelihood of the cut itself, the Dow added just shy of 100 points after the bell, pushing it back above 27300 in the process.”

The European markets were also buoyed by the news that a looser monetary policy could be on the horizon. The German Dax increased by 0.26 per cent, while the French Cac rose by 0.03 per cent.

Sterling fell against the dollar as the Chancellor revealed that the Government accelerated borrowing

15.6 The FTSE 100 points increase at the

close of trading yesterday

in June to help balance its books.

The pound was down 0.35 per cent at 1.250 versus the US dollar, and up 0.13 per cent at 1.113 against the euro.

Mr Campbell added: “Sterling is in for an interesting time of it next week – Tuesday sees the results of the Tory leadership race, with Jeremy Hunt or, more likely, Boris Johnson becoming prime minister on Wednesday.”

In stocks, the market reacted positively as ITV confirmed it has inked an agreement with the BBC to launch the BritBox streaming service in the UK. The broadcasters said BritBox, which they hope will counter competition from US giants, will cost “less than other streaming services”.

Shares in ITV closed up 0.8p at 110.2p.

The biggest risers on the FTSE 100 were Tui, up 39.2p at 804p, Ocado, up 54p at 1,194.5p, Antofagasta, up 35.4p at 934p, and Johnson Matthey, up 85p at 3,131p. The biggest fallers were Fresnillo, down 18.6p at 794.8p, WPP, down 21p at 916.8p, Berkeley Group, down 73p at 3,756p, and DS Smith, down 6.2p at 357.2p.