In addition to being the first rate increase in nearly a decade for the world’s largest economy, the rate hike breathed confidence into global markets indicating that the worst of the financial crisis’ aftermath had passed.
The FTSE rose 41 points, or 1.2 per cent to 6,102 points, but is down by around seven per cent since the start of the year.
The UK blue-chip index jumped 98 points, or 1.6%, to 6,160 in a broad-based rally with almost every single stock making gains, amid investor relief at the US Federal Reserve’s 0.25% increase in interest rates.
Stocks with exposure to emerging markets were among the best performing stocks on the globally-exposed FTSE 100 as the move by the Fed was well received across the world.
“We’re moving up on the back of the USA interest rate rise, but the FTSE still has some weakness in it because the miners are still coming under pressure”, said Beaufort Securities’ sales trader Basil Petrides. Gold prices at 1065.9 United States dollars flirted with six-year lows.
European share markets followed the lead of stocks in the United States and Asia.
Frankfurt and Paris both jumped by more than 2.0 percent, while outside the eurozone London’s main index won 1.6 percent compared with Wednesday’s close ahead of the Fed decision.
British government-issued bonds, or gilts, rose in price following the Fed decision, meaning lower yields, or income.
However, positive sentiment across the sector also saw Tesco rise 4.5p to 152.5p.
The joint venture, called Amblin Partners, will see Entertainment One extend its film distribution rights with Spielberg’s DreamWorks studios.
The biggest fallers on the FTSE 100 Index were Anglo American down 14.7p at 263.6p, Berkeley Group down 172p at 3585p, Glencore down 3.5p at 80.9p and Randgold Resources down 143p at 3977p.
