Signs of hope for the global economy helped the FTSE 100 Index break a four-day losing streak as it surged 1.4 per cent higher.
The Footsie rose some 77 points to 5,523.92, with similar gains across indices worldwide as investors reacted to speculation that China will announce measures to bolster flagging growth and noted better figures on the US economy.
Michael Hewson, senior analyst at CMC Markets, said: “European markets have put to one side concerns about this week’s upcoming EU summit, choosing instead to focus on a story out of China that the country could well implement more proactive policies to shore up growth.”
The encouraging noises from the world’s largest economies helped industrial stocks, with pumps and valves firm Weir Group up 3 per cent at 1,457p.
Drinks firm SAB Miller was also up 3 per cent, to 2,540p, after broker Galvan recommended it as “an emerging markets play”.
But steelmaker Evraz was one of the biggest fallers, down 3 per cent at 248.9p after German peer Salzgitter suggested it would struggle to break even this year.
The FTSE managed its rally despite a drag from several stocks going ex-dividend. Interdealer broker ICAP was the bigger faller, down 4 per cent at 345.5p.
Banks were among those leading the FTSE 100 higher – including Barclays, which rose 1.9 per cent despite news it has agreed to pay penalties of £290 million to settle claims that it manipulated interbank lending rates at the height of the financial crisis. Its shares rose 3.7p to 196.1p.
Lloyds Banking Group was another riser, with shares up 1.1p at 31.2p. Rumours that it had moved closer to selling 632 bank branches to the Co-op had been circulating all day and were confirmed after the market closed.
NEW YORK: Wall Street rose last night as upbeat economic data helped lift oil prices and energy stocks, overshadowing concerns the upcoming summit of European leaders will fail to yield tangible progress.
The Dow Jones industrial average gained 93.32 points, or 0.74 per cent, to close at 12,627.99 while the broader Standard & Poor’s 500 Index gained 11.89 points, or 0.90 per cent, to finish at 1,331.88. The Nasdaq Composite Index gained 21.26 points, or 0.74 per cent, closing at 2,875.32.
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Weather for Edinburgh
Wednesday 22 May 2013
Temperature: 3 C to 13 C
Wind Speed: 23 mph
Wind direction: West
Temperature: 5 C to 11 C
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