Dutch insurer Delta Lloyd (Euronext Amsterdam: DL-NL) surged over 6 percent after the Dutch central bank said the firm was ready for Europe’s new regulatory regime for insurers called Solvency II.
Advertisement
The U.S. rate hike also pushed down the price of gold and other metals, A stronger dollar makes commodities that are priced in the currency more expensive for buyers using other currencies. FTSE 100 went up 41.35 points or 0.68 percent to close at 6,102.54.
The euro picked up to $1.0845 in foreign exchange deals having fallen heavily Wednesday after the US Federal Reserve raised borrowing costs for the first time in nearly a decade. BP and Royal Dutch Shell were up 0.9 percent and 1.3 percent respectively.
The dollar index (.DXY), which measures the greenback against a basket of other major currencies, was up 1.3 percent at 99.158, on pace for its biggest percentage gain since October 22.
Stock markets have seen a turbulent start to December in the run-up to the expected move, with shares hit by weakening commodity and oil prices, against the backdrop of slowing growth in China.
Fed chair Janet Yellen said the decision “recognises the considerable progress that has been made toward restoring jobs, raising incomes and easing the economic hardship of millions of Americans”.
Germany’s DAX and the Cac 40 in France were both up by around 2.5%.
Brent and US crude oil prices fell and remained near multi-year lows after fresh supply builds at the delivery point for USA crude futures added to worries about a global glut and strength in the dollar.
Copper (CMCU3) lost 1.4 percent and is down almost 28 percent for the year so far.
STANDARD CHARTERED – Simgapore’s Temasek is willing to give the emerging markets lender time to work on its turnaround before deciding on the fate of its underperforming $4billion stake in the United Kingdom bank as part of a portfolio reshuffle, people familiar with the matter have told Reuters.
In Asia, Tokyo ended 1.6 per cent higher, Shanghai put on 1.8 per cent and Sydney climbed 1.5 per cent.
A number of stocks got a boost from the Fed’s interest rate hike, particularly names in the financial services, banks and insurance sectors.
Advertisement
European stock markets rallied sharply after FED indicated for a gradual rise of interest rate going ahead.
