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FTSE Index rises after Hurricane Irma downgrade


News that Hurricane Irma has been downgraded to a tropical storm has helped boost global stocks this week, with London's FTSE 100 Index and its European peers enjoying a particularly strong week so far. 


The FTSE 100 Index jumped 35.99 points or 0.5% to 7,413.59 points whilst France's CAC 40 Index and the German DAX surged 1.2% and 1.4% respectively. 


Investors opted for riskier trades such as equities to boost stock markets, having previously turning to save havens, including gold and bonds amidst increasing geopolitical tensions involving the US and North Korea. 


David Madden, a CMC Markets UK market analyst, said "The lack of hostilities in relation to North Korea and the downgrading of Hurricane Irma to a category one storm has prompted traders to buy back into the market. North Korea celebrated the founding of the state over the weekend, and investors were worried the event could have prompted Pyongyang to mark the occasion by testing a missile. Seeing as the North Korean regime didn't show off its military might over the weekend, traders were encouraged to take on more risk." 


News that BP will float its US pipeline assets on the New York Stock Exchange saw shares in the oil giants rise 3p to 449.1p. After filing with the US Securities and Exchange Commission, a BP Midstream Partners Initial Public Offering (IPO) could happen as soon as this year's Q4. 


The FTSE 100's biggest risers included, Carnival (+145p to 5,180p), EasyJet (+39p to 1,195p), Provident Financial (+30p to 825p) and International Consolidated Airlines Group (+14p to 607.5p). In contrast, the Index's biggest fallers were Randgold Resources (-125p to 8,000p), Associated British Foods (-162p to 3,103p), Johnson Matthey (-41p to 2,864p) and Convatec Group (-6.4p to 271.8p).


Written by Abi Moses


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