FTSE inches higher as nervy investors eye US

The blue chip index closed marginally higher on Tuesday as corporate data proved to be relatively encouraging overall but markets held their breath as the US creeps steadily closer to a default. By close of trade, the FTSE 100 index had risen by 0.1 per cent to reach 5929 having been rangebound over just 55 points during the day.

Chris Bradshaw
shareprices.com - Tuesday, July 26, 2011

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GlaxoSmithKline

A whole host of corporate results were due on Tuesday with some notable disappointments but also some strong performances. However, movement in the market was relatively muted as investors are awaiting the outcome of the US debt talks which show no sign of reaching a conclusion.

City analysts believe there is no chance that Congress will allow the matter to reach the critical date without making some kind of agreement and suggest that shrewd investors should take advantage of weak prices in the market at the moment which will undoubtedly strengthen once the two sides reach a compromise.

BG Group was the best of the companies posting their results, with a 27 per cent rise in second quarter profits prompting its share price to soar by 4.3 per cent.

Also doing well was GlaxoSmithKline who, after enduring a torrid time last year, reported significant improvements leading to its stocks rising by 0.7 per cent. The pharmaceutical giant was also boosted by comments from Seymour Pierce who described the firm's medication pipeline as the most impressive of all its peers.

However, one of the biggest downward pressures on the index came from BP as its figures fell short of expectations and it failed to report significant gains from the recent hikes in crude prices. The news led to shares slumping by 2.6 per cent.

 

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