THURSDAY MARKET CLOSE: Fed inspires rally

Shares in Aberdeen Asset Management jumped more than 6 per cent as the US Federal Reserve’s surprise decision not to taper off its stimulus programme boosted the emerging markets in which it invests.

Miners and oil firms were also among those leading the rally as the price of gold, silver and oil all made significant gains in response to the weakening dollar, but defensive stocks were also in demand.

Chris Beauchamp, market analyst at IG, said: “Solid dividend payer United Utilities is 2.3 per cent higher today after a trading statement. With interest rates still unmoved from record lows, investors will continue to look to such firms and their excellent yields to relieve the problem of non-existent income from other sources.”

United advanced 16p to 707.5p. Aberdeen Asset Management made even better gains, adding 23.5p to 390.8p, on the rebound from recent negative broker comment. Among the other financials, Asia-foused bank Standard Chartered was 50p higher at 1,564p.

But the biggest blue-chip climber was Randgold Resources, which put on more than 8 per cent at 4,841p, with Fresnillo up 6 per cent at 1,069p and Anglo American almost 4 per cent higher at 1,635p.

The FTSE 100 lost a little steam late in the session but still closed 1 per cent higher, up 66.57 points at 6,625.39.

Vodafone was among a relatively small group of top flight fallers, following news that some executives had exercised options or sold down some of their holdings in the firm.

Mike van Dulken, head of research at Accendo Markets, asked: “If directors are assumed to know the business outlook best, is management calling the top, putting a cap on the shares in the near term?”

Shares in Vodafone slipped 1.6p at 209.75p.