FTSE edges higher as miners boost

The top share index in the UK was higher in the first session of the week as a strong mining sector help to lift the FTSE 100. The bluechips ended the day higher by 0.4 per cent, adding over 20 points to close at 5657.

Chris Bradshaw
shareprices.com - Tuesday, January 17, 2012

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The whispers sweeping the market on Friday about an imminent credit downgrade for several European countries proved to be correct as Standard & Poor stripped both Austria and France of their top-notch ranking as well as downgrading 7 other nations. But the mood quickly changed as investors acted on data from China which seemed to point towards a potential fiscal easing, sending the price of metals upwards.

The heaviest faller of the day was unsurprisingly Carnival, the cruise ship firm which owns the vessel, Costa Concordia, which capsized off the west coast of Italy. Experts say confidence in the cruise industry could be substantially shaken in the short term by images of the ship wrecked, leading to losses for operators, but expect earnings to recover as time passes. Carnival have said that the disaster will mean a $90 million loss in its earnings for 2012.

Also lower on Monday was Kingfisher, the second largest casualty of the day, dropping 2.1 per cent after a broker downgrade as a result of sentiment in the European retail industry.

Outsourcing expert Capita was also hit by a broker downgrade, shedding 1.6 per cent, after Collins Stewart and BofA Merrill Lynch both pointing to disappointing contract news.

 

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