TUESDAY’S MARKET CLOSE: Eurozone recovery hopes buoy FTSE

SIGNS that the eurozone might finally be lifting itself out of recession gave markets a boost today amid hopes that Britain’s biggest trading partner could be on the road to recovery.

Economic sentiment in Germany rose to a four-month high, while eurozone industrial output edged ahead by 0.7 per cent.

News of the positive figures came ahead of key eurozone gross domestic product data, which is due out today.

IG market analyst Chris Beauchamp said: “Good European economic data has been enough to keep markets in positive territory throughout the day, even if the FTSE 100 has not been keen on holding above 6,600.”

The Footsie closed up 37.6 points at 6,611.94, having rolled between 6,568.44 and 6,620.43 over the course of the session.

Pharmaceuticals maker GlaxoSmithKline was the stock that contributed the highest number of points to the FTSE 100 index’s rise after regulators in the United States approved one of its HIV drugs for sale.

Mining stocks continued to be in demand, with Fresnillo up 62p to 1,165p and Rio Tinto 71p ahead at 3,263p.

British Airways-owner IAG recovered some of its lost ground, rising by 8.4p to 320.6p following a 3.5 per cent nosedive on Monday.

Security firm G4S was on the rise – up 1.9 per cent or 4.6p at 248.7p – a day after activist hedge fund Cevian Capital took a 5 per cent stake in the business.

Shares in Wolfson dipped by 0.25p to 161.5p despite non-executive director Charlotta Ginman buying 7,024 shares in the Edinburgh-based chip maker at 163p.

Prudential was down 17p at 1,215p after shareholders took profits following the positive reaction to Monday’s half-year results.

Recruitment firm Michael Page International slipped 4 per cent after it said the summer hiring lull and wobbly global job markets will mean further challenging trading conditions in the third quarter.

While half-year results were in line with expectations, shares fell 18.8p to 450.2p as its cautious tone spooked investors.

Chemicals firm Synthomer climbed 9.5p to 215.5p after analysts at Morgan Stanley maintained their “overweight” rating despite half-year profits falling 10.3 per cent to £48.6 million.