The FTSE 100 gained 0.3 percent, or 21.95 points to 6,564.39 at late afternoon trading in London. The index has edged up 0.6 percent this week as investors exuded optimism that the U.S.-Russia tit-for-tat sanctions would not disrupt global trade.
The much wider FTSE All-share index surged 0.3 percent, as Ireland’s ISEQ index grew 0.3 percent. Trading may be more unpredictable as options and futures contracts expire, a process called witching.
“In the last year to 18 months, we’ve had incredible amounts of potentially derailing news to overcome, and every single time, the markets have come through,” Toby Morris, a trader at CMC Markets Plc in London, said in a telephone interview with Bloomberg. “A lot of people are looking over their shoulder for the potential of a far more drastic selloff than we’ve seen. Because every time it doesn’t materialize, we move higher.”
Gains by commodity producers were led by Polymetal International Plc, which surged 3.4 percent to trade at 635 pence as gold prices climbed. Hot on the heels was Fresnillo Plc, which gained 2.3 percent to 886 pence, driven by gold prices which surged for the first time this week. Anglo American Plc also edged 2.6 percent higher to 1,448.5 pence as the index for publicly-held firms rose for the second day in London.
Luxury goods maker Burberry Group Plc plunged 2 percent to 1,391 pence after it was downgraded by Bank of America as a hold. The decision was based on the fact that currency swings may slash 2015 profit by as much as 50 million pounds ($82 million).
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