U.K Stocks To Hit Record Highs – Traders Can Benefit From Going Long
U.K stocks extended their rally for a sixth consecutive trading day. The FTSE100 is on course to reach a 14-month high at 6956.21 one more time. The delay in US interest rate hikes encouraged the benchmark index to surge 1.4% from the market open onwards.
A weakening dollar makes commodities cheaper to buyers and has helped power shares of miners and other commodity companies. Additionally, lax monetary policy leads to a higher money supply which in turn increases commodity demand down the line.
Commodities trading firm Glencore’s stocks dominated the index, up 5.78%. Following close behind are BHP Billiton that is up 5.14% and Anglo American surging 3.35%. Antofagasta, Rio Tinto and Polymetal International all soared higher as well.
The banking sector, which can be adversely affected in a low interest rate environment, gained the least today. HSBC Holdings PLC posted the biggest losses among those trading lower. The group’s shares lost more than 1% so far after being downgraded from “Buy” to Neutral” by some rating agencies.
Buy Stop at 6932.00, Take profit at 6954.80, Stop loss at 6880.00