Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Two Russia-focused miners will leave the U.K.’s benchmark FTSE 100 Index after the invasion of Ukraine sparked a selloff in Russian assets.
Steel company Evraz Plc and gold miner Polymetal International Plc will be removed from the blue-chip index as of March 21, the London Stock Exchange Group Plc’s FTSE Russell said in a statement.
The U.S. and European Union hit Moscow with a wave of sanctions against a raft of individuals, companies and institutions, prompting a selloff in Russia-focused assets. Evraz has slumped 79% since the start of last week, while Polymetal shares have plunged 74%. Both miners combined account for less than 0.1% of the total index.
“After Russia invaded Ukraine and then stringent sanctions were imposed on Moscow, the fortunes of the Russia-focused miners Evraz and Polymetal International have reversed dramatically,” said Susannah Streeter, an analyst at Hargreaves Lansdown Plc.
Gold producer Endeavour Mining Plc, which owns and operates mines in west Africa, joins the Index along with kitchen maker Howden Joinery Plc.
Budget airline EasyJet Plc’s hopes of moving up to the large-cap gauge have been dashed by a pullback in its shares, hit by mounting worries about fuel costs, travel bans stemming from the war and the broader impact of the invasion on travel sentiment.
An addition to the FTSE 100 usually leads to buying of the promoted stock, as so-called tracker funds adjust their weightings in line with the benchmark’s allocations.
(By Kat Van Hoof)
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