Markets were able to shrug off some disappointing economic data on Thursday as hopes over a continuation of monetary easing by the US Federal Reserve lifted stocks.
Speaking this afternoon to the Senate Banking Committee, soon-to-be Fed Chair Janet Yellen argued that the central bank's quantitative easing (QE) programme, which has been in place since late 2008, has made a "meaningful contribution to economic growth".
However, she said that the labour market and wider economy are still performing "far short of their potential" with unemployment still too high. As such, she assured that Fed policy is "not on a set course", raising hopes that the central bank could put off a tapering of QE until next year.
The FTSE 100 finished 36.13 points higher at 6,666.13, rebounding after hitting its lowest level in nearly four weeks on Wednesday (6,630).
Financial Sales Trader Alex Conroy from Spreadex said that Yellen's "vigorous defence of QE" led to a strong finish for markets "as investors who may have been cautious about getting into equities just before tapering occurred, get the encouragement they need".
Stocks had pared gains this morning after a series of gloomy economic figures from this side of the Atlantic.
UK retail sales fell by 0.7% in October, compared with a 0.6% gain the month before, disappointing analysts who had pencilled in no change month-on-month.
Meanwhile, Eurozone gross domestic product growth eased to 0.1% in the third quarter, in line with analysts' estimates but down from the 0.3% expansion seen in the second quarter. German GDP growth slowed from 0.7% to 0.3%, as expected, while French economic activity contracted by 0.1% from 0.5% growth in the second quarter, worse than forecasts.
Source: LiveCharts
Speaking this afternoon to the Senate Banking Committee, soon-to-be Fed Chair Janet Yellen argued that the central bank's quantitative easing (QE) programme, which has been in place since late 2008, has made a "meaningful contribution to economic growth".
However, she said that the labour market and wider economy are still performing "far short of their potential" with unemployment still too high. As such, she assured that Fed policy is "not on a set course", raising hopes that the central bank could put off a tapering of QE until next year.
The FTSE 100 finished 36.13 points higher at 6,666.13, rebounding after hitting its lowest level in nearly four weeks on Wednesday (6,630).
Financial Sales Trader Alex Conroy from Spreadex said that Yellen's "vigorous defence of QE" led to a strong finish for markets "as investors who may have been cautious about getting into equities just before tapering occurred, get the encouragement they need".
Stocks had pared gains this morning after a series of gloomy economic figures from this side of the Atlantic.
UK retail sales fell by 0.7% in October, compared with a 0.6% gain the month before, disappointing analysts who had pencilled in no change month-on-month.
Meanwhile, Eurozone gross domestic product growth eased to 0.1% in the third quarter, in line with analysts' estimates but down from the 0.3% expansion seen in the second quarter. German GDP growth slowed from 0.7% to 0.3%, as expected, while French economic activity contracted by 0.1% from 0.5% growth in the second quarter, worse than forecasts.
Source: LiveCharts
