FTSE 100 heads higher
Strong start on Wall Street boosts FTSE 100
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Wednesday, 12, Aug 2009 05:19
A strong start on Wall Street helped the FTSE 100 end 0.97 per cent higher at 4,716.76.
The index began the day in the red, as news of rising unemployment and the Bank of England's cautious outlook on the economy, hit the markets, and by early afternoon was hovering around yesterday's closing level.
But a strong start to the US markets helped boost the index, and the FTSE 100 rose steadily over the final hours of the day to end 45 points higher.
Construction firm Balfour Beatty led the rise, up by 8.26 per cent after a rise in profits for the first half and a hike in the interim dividend.
Lloyds Banking was also up by 6.42 per cent, recovering slightly after recent sell-offs, followed by Royal Bank of Scotland, up by 5.42 per cent.
Mining stocks were still trading lower, however, with Fresnillo down by 3.64 per cent and Eurasian Natural Resources down by 2.93 per cent.
Tim Hughes, head of sales trading for IG Index, said: "Today's mixed bag of data will keep investors wondering what to expect in the medium-term; will the markets sweeten with positive corporate results, or will the hard reality of unemployment leave a sour taste in the mouth?
"For the moment though, the FTSE is looking fairly resilient."
The Dow Jones was up by 1.39 per cent and the S&P 500 jumped 1.28 per cent as the US markets went into afternoon trading.