MONDAY MARKET CLOSE : Draghi pledge boosts markets

A PROMISE from European Central Bank president Mario Draghi to do “whatever it takes” to save the euro helped revive the London market yesterday.
President of the European Central Bank Mario Draghi addressed the committee today. Picture: APPresident of the European Central Bank Mario Draghi addressed the committee today. Picture: AP
President of the European Central Bank Mario Draghi addressed the committee today. Picture: AP

In a speech to the European Parliament, Draghi said the central bank was prepared to buy government bonds if inflation in the 18-country eurozone fails to rise.

His comments edged the FTSE 100 index up 17.6 points to 6671.97, having spent most of the session in negative territory after Japan revealed it slumped into recession by contracting at an annual pace of 1.6 per cent in the third quarter.

Draghi’s remarks also helped European markets close higher.

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Miners were stronger despite the mixed international news with Fresnillo up 16p to 736.5p and Anglo American up 17.5p to 1,372.5p.

With China’s economy also showing signs of slowing, Asia-facing stocks were under pressure as Standard Chartered fell 21.6p to 936.3p and HSBC dropped 2.7p to 640p. Consumer goods giant Unilever was 7p lower at 2,598p and luxury goods firm Burberry eased 8p to 1,550p.

Fears that Opec members will not cut production when they gather for a meeting in Vienna this week meant the price of Brent crude resumed its recent decline to stand at just below $79 a barrel.

But BP edged up 0.65p to 432.45p and Royal Dutch Shell lifted 8.5p to 2,303.5p.

Supermarkets Tesco and Sainsbury’s were back under pressure - off 2.3p to 192.7p and 4.4p to 265.7p respectively - but Morrisons moved up after Goldman Sachs upgraded its rating on the stock to buy. The Bradford-based grocer was 2p higher at 181.5p. The biggest risers in the FTSE 100 index BSkyB up 16.5p at 864p.

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