Defensive stocks lift FTSE 100 at start of pivotal week for central banks
SPY•Central bank decisions and UK data are in focus
- Investors will watch employment and inflation reports in the UK ahead of the Bank of England's interest rate decision on Thursday, when it is widely expected to hold rates.
- The U.S. Federal Reserve will announce its decision on Wednesday, with markets pricing in a 90% chance of a 25-basis-point hike, according to CME's FedWatch Tool.
- UK's Prime Minister Andy Burnham is set to meet executives from banks, oil majors, and a telecom firm, to discuss his economic growth plans.
Among mid-cap stocks, GlobalData DATA.L slid nearly 19% to the bottom of the FTSE 250 after the data analytics and consulting company's annual revenue growth forecast disappointed investors.
FTSE 100 rises as investors move into defensive sectors
Sept. 14 (Reuters) - London's FTSE 100 rose on Monday as investors flocked to defensive sectors such as healthcare and consumer staples, while government bond yields resumed their advance in a week packed with central bank decisions.
The blue-chip FTSE 100 index .FTSE closed up 0.4% at 10,697.57 points. The midcap FTSE 250 .FTMC slipped 0.6% to 23,834.48 points, its lowest close in more than a month.
- Oil prices rose about 3% after new strikes on Saudi Arabian infrastructure and Gulf shipping. Oil majors Shell SHEL.L and BP BP.L gained about 1% each. O/R
- Investors flocked to defensive sectors considered more insulated from economic cycles. Pharma stocks .FTNMX201030 rose 3.8%, with GSK GSK.L gaining 4.7% after it announced positive results for two lung cancer drugs: Jideytro and Ris-Rez.
- Consumer-facing personal care, drug and grocery .FTNMX452010 and beverages .FTNMX451010 added 2.8% and 2.6%, respectively.
- British government bond yields ground higher once again on Monday, hitting new multi-year highs across maturities.
