FTSE lifted by eurodebts resolution hope

The top share index in the UK was boosted by news that France and Germany are set to unveil new measures to tackle the debt crisis. By the close of the session, the FTSE 100 was higher by 1.8 per cent, reaching 5399, a five week closing record.

Chris Bradshaw
shareprices.com - Tuesday, October 11, 2011

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However, despite the upbeat market mood, not all investors were convinced as trading volumes remained thin at only 64 per cent of the 90 day moving average. Earlier in the session, sentiment was high as it was announced that Angela Merkel and Nicolas Sarkozy had reached an agreement over new measures to be implemented in Europe which have been promised to be revealed by the end of the month.

Trailing at the foot of the leaderboard on the first session of the new week was Premier Foods, lower by 12.24 per cent, following the pounding it received on Friday when it issued a profits warning. The firm has also been hit with an 84 per cent cut in its target price plus a downgrade by brokers.

At the opposite end of the tables, financial firms were doing somewhat better. After absorbing the news in the previous session of the British bankers downgrade, the sector bounced on Monday as it the hope over a solution for the debt crisis on the continent breathed new life into the stocks. Barclays was the stand out banking performer with an increase of 4.5 per cent whilst Old Mutual with the top insurer, climbing by 5.1 per cent.

 

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