FTSE boosted by economy growth
The blue chip index rose by lunchtime on Wednesday as investors breathed a sigh of relief as data showed a small amount of growth in the economy, via the GDP update. By 12.37 GMT, the index had risen by 0.1 per cent to 6074, after closing at a nine week high during the previous session.
Chris Bradshaw
shareprices.com - Wednesday, April 27, 2011
Although the GDP results showed an increase, it was no greater than the shrinkage seen in the last quarter of 2010, effectively meaning there has been no net growth in the economy for six months. This position means the interest rate rise previously predicted for May is unlikely to go ahead, with November now being seen as the likely target date.
Corporate earnings were the main driver behind the index on Wednesday with several key firms announcing their profits. Aggreko rose 5.3 per cent as it confirmed it expected to exceed 2010's results, with the temporary power supplier being in demand in Japan.
GKN, Weir Group and IMI all boosted the engineering sector which was buoyed by strong midcap earnings, with all three firms rising by 3 per cent.
However, at the opposite end of the spectrum, Associated Foods slipped by 6.1 per cent as it reported its annual earnings to be flat, with discount clothing flagship brand Primark feeling the pinch.
The banking sector disappointed on the day as Barclays fell by 4.8 per cent as it failed to reach the targets set for the first quarter of 2011.
ARM Holdings also fell by 1.5 per cent despite its profits rising by 34 per cent, a better than forecast performance.
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News
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