Wall Street higher as FTSE 100 closes in positive territory amid global rally

FTSE  Screens on the trading floor at New York Stock Exchange (NYSE) display the Federal Reserve Chair Jerome Powell during a news conference after the Federal Reserve announced interest rates will raise half a percentage point, in New York City, U.S., December 14, 2022. REUTERS/Andrew Kelly
FTSE 100 hold on to gains as Wall Street awaited key economic data reports from the Fed. Photo: Andrew Kelly/Reuters

The FTSE 100 and European stocks continued the new year's rally as Wall Street picked up the pace amid a global rally.

The FTSE 100 (^FTSE) rose 0.41% to 7,585 points, while the CAC 40 (^FCHI) in Paris jumped 2.19% to 6,769 points. In Germany, the DAX (^GDAXI) climbed 2% to 14,466. European shares have performed a hat-trick, rising for the third day in a row in the new year.

Across the pond, stocks were higher on hopes of an economic recovery in China, while focus was also on minutes from the Federal Reserve's December policy meeting for clues on the outlook for interest rate hikes.

The Dow Jones (^DJI) rose 0.18% to 33,193 points. The S&P 500 (^GSPC) climbed 0.48% to 3,842 points and the tech-heavy NASDAQ (^IXIC) jumped 0.37% to 10,425.

In London, miners of precious and base metals took an early lead, rising around 1% as prices rebounded against a weaker US dollar.

Victoria Scholar, head of investment at Interactive Investor, said: “The FTSE 100 is extending gains after its first session of the year in which the UK index gained more than 1%.”

“China-sensitive Burberry (BRBY.L) is trading at the top of the FTSE 100 while commodity stocks like Glencore (GLEN.L), BP, Shell, and Centrica (CNA.L) are languishing at the bottom on the back of weaker oil and gas prices.”

“European bourses are higher for a third consecutive session with the CAC 40 outperforming. France’s inflation rate eased to 5.9% in December, beating analysts’ expectations for 6.4%.”

Read more: Interest rates: What to expect from the Bank of England in 2023?

Meanwhile, Brent crude (BZ=F) dipped to around $78 per barrel, pressured by weak demand data from China.

Oil majors BP (BP.L) and Shell (SHEL.L) lost more than 3.5% each as oil prices fell on China demand woes.

Read more: Food price inflation hits new high of 13.3%

In Asia, Tokyo’s Nikkei 225 (^N225) tumbled 1.45% to close at 25,716 while the Hang Seng (^HSI) in Hong Kong climbed 3.06% to 20,761. The Shanghai Composite (000001.SS) climbed 0.22% to 3,123 points.

Watch: European stocks gain on hopes for economy