FTSE hits one-month high

The FTSE 100 is above the important 6500 level for the first time since early June, as the US reporting season gets underway.

In recent years the reporting season has provided a boost to equity markets, as the majority of companies have announced figures that above analysts’ estimates.

Alcoa revealed a strong set of figures last night despite a recent slump in commodity prices. Natural resources have been in a downward trend over the past few months as traders are concerned that China is slowing down, but the aluminium giant still managed to impress traders with its results.

A knock-on effect can be seen in London, where the mining sector is up 2%; the best performing sector of the day. Ferrexpo has come out on top, as the iron ore producer announced an 11.4% increase in yearly output. The stock is up 10% today. Egyptian gold miner Centamin is bucking the positive trend; the share price is down 4% due to political uncertainty in the country.

Across the pond, the Dow is up 50 points at 15,274; the US equity benchmark opened higher but has been drifting lower as traders have used the Alcoa results as an excuse to lock in profits. We are not expecting a corporate announcement from any major US companies during the rest of the session, but the Federal Reserve is making a statement tomorrow evening (London time).

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