Investment market update
UK stocks are expected to open flat to slightly higher this morning, with investors digesting Federal Reserve Chair Janet Yellen’s latest comments on the future of US interest rates.
Asian and US stocks advanced, with the S&P 500 Index regaining a seven-month high, as Federal Reserve Chair Janet Yellen signalled the economy is still strengthening enough to withstand gradual increases in borrowing costs despite recent signs of slower job growth.
UK stocks advanced the most in almost two weeks amid a weakening of the pound after polls showed more voters are supporting an exit from the European Union. Commodity producers climbed the most, with Anglo American Plc, Rio Tinto Group and BHP Billiton Ltd. rallying more than 6%.
Janet Yellen has signalled that the US Federal Reserve will hold off raising rates this month, as she described Friday’s weak jobs report as disappointing and highlighted uncertainties ahead including Britain’s referendum on its EU membership.
Commodities entered a bull market on Monday, ending a five-year retreat, as supply constraints drive up prices in everything from soybeans to zinc, and help the asset class outperform bonds, currencies and equities so far in 2016.