American data gives boost to Footsie

A RAFT of encouraging data from the United States gave the London market a boost yesteday as traders recovered from concerns over Cyprus’ bailout becoming a blueprint for other rescue deals.

Demand for long-lasting US manufactured goods surged in February and single-family home prices posted their biggest year-on-year gain in January in six-and-a-half years.

Toby Morris, senior sales trader at CMC Markets, said: “In the absence of any firm bad news over Cyprus, the market is pressing higher on the back of the back of decent data out of the US. People are trying to get stuck into economic data, which won’t change a few hours later, instead of trying to pick up the pieces of the mixed messages out of the European Union.”

The FTSE 100 index closed up 20.99 points or 0.3 per cent at 6,399.37, having touched 6,404.52 earlier in the session.

State-backed banking stocks remained under pressure from the bailout uncertainty, as Royal Bank of Scotland eased 1.2p to 286p and Lloyds Banking Group dropped 0.2p to 47.7p.

Catering supplies giant Compass was also among the biggest FTSE 100 fallers, down 11p to 824p, as stockbroker Numis Securities said its share price growth looks likely to stall despite continued strong trading in North America.

Supermarket Morrisons was up 9.3p to 276p, a 3 per cent gain, after Citigroup introduced a “buy” rating on the stock amid hopes for a trading recovery, driven by the retailer’s “Nutmeg” clothing range for children.

Aberdeen Asset Management was the Footsie’s biggest riser, up 4 per cent or 16.6p to 428.4p, after Numis raised it to “buy” from “add”.

NEW YORK: Wall Street, too, bounced last night, pushing the S&P 500 within striking distance of its all-time high, as strong data on home prices and manufacturing fed optimism about the US economy.

The Dow Jones industrial average shot up 111.74 points, or 0.77 per cent, to end at 14,559.49 while the broader Standard & Poor’s 500 Index gained 12.08 points, or 0.78 per cent, to finish at 1,563.77 – just 1.38 points below its record closing high set in 2007. The Nasdaq Composite Index gained 17.18 points, or 0.53 per cent, to close at 3,252.48.