Markets: FTSE responds to auction stations

By Dominic Jeff
Published on Wednesday 18 January 2012 04:25

A ROUND of successful debt auctions across Europe lifted the London market yesterday in the latest sign that a series of credit rating downgrades have been broadly shrugged off by investors.

The FTSE 100 Index closed 36.51 points higher at 5,693.95 after debt auctions by Spain, Greece and Europe’s bailout fund drew solid interest from investors.

Michael Hewson, analyst at CMC Markets, said resource stocks also helped markets higher after the latest Chinese economic data came in above expectations.

“This data has reassured markets that even though growth is slowing it is not at a rate to warrant concern,” he said.

Royal Bank of Scotland’s shares pared early gains but still closed 1.7 per cent higher following confirmation of the sale of its aircraft leasing business for £4.7 billion, while Shore Capital improved its recommendation for the stock from “sell” to “hold”.

RBS shares climbed 0.4p to 24.9p and have now added 14 per cent since Thursday when the bank unveiled restructuring plans at its investment arm.

German yogurt giant Müller moved a step further in its takeover of Scottish dairy group Robert Wiseman, saying it had bought or secured undertakings on about 62.6 per cent of the company’s shares. Trading on Wiseman’s shares settled at 387.75p, up 0.25p, following large gains in the previous two sessions.

Oil and gas engineering firm Plexus, which has its main operations in Aberdeen, announced it had raised £6.2 million before expenses with a share placing. The firm will use the cash to expand internationally.

The shares dropped 1.5p to 86p yesterday.

NEW YORK: Wall Street stocks sold off late in the session last night to end with modest gains as Citigroup’s steep drop in profit gave investors a reason to unload bank shares.

The Dow Jones industrial average was up 60.01 points, or 0.48 per cent, to end at 12,482.07 while the broader Standard & Poor’s 500 Index was up 4.58 points, or 0.36 per cent, to finish at 1,293.67.

The Nasdaq Composite Index closed up 17.41 points, or 0.64 per cent, at 2,728.08.

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