The FTSE is showing all sectors in the green. Glencore is the highest riser and basic resource stocks are in demand despite the volatility in China overnight???the Shanghai Composite closed lower by 2.55 per cent. Perhaps the fact that the losses remain in single digits is considered good news these days?Indices closer to home have added an average of one per cent. The Dax, still in death cross mode, has bounced higher???but it is notable that it is the utilities sector that is leading the gainers,?followed closely by the materials sector. News from the National Bureau of Statistics said China’s economy actually grew 7.3 per cent in 2014, down from 7.4 per cent. Naturally, these figures can be taken with a large pinch of salt, but the market seems to be liking it. With Chinese FX reserves falling to two year lows, it?s hardly a disaster. The war chest still has some $3.56tn (?2.33tn) left albeit lower than forecast. We can likely expect to see further reductions in reserve requirements in the near term which may in turn help prop up the stock market there. The recent sell off in European markets has created some pockets of value in certain stocks and this has been recognised with a host of broker upgrades aiding risk sentiment. Glencore has temporarily reversed its mantel from the FTSE dog to the FTSE darling by rising as much as 12 per cent in early trade. Read more about the FTSE 100:
- “Rising executive pay a disgrace”: Top ten FTSE 100 CEOs net ?156m
- What do you need to be a CEO of a FTSE 100 company?
- Diversity in FTSE 100 company boardrooms declining
Brenda Kelly is head analyst at London Capital Group.
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