FTSE shoots up as China monetary policy boosts

The top share index in Britain moved higher during the first session of the week after China announced an unexpected easing in their monetary policy. By the close of trade, the FTSE 100 was higher by 0.7 per cent, adding over 40 points to finish at 5945, nearly reaching a 7 and a half month peak.

Chris Bradshaw
shareprices.com - Tuesday, February 21, 2012

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Miners were given the biggest boost as China surprised the market by slashing the amount of capital than banks must hold. The move is designed to stimulate growth as fears grow over stagnation in the world's largest importer. Banks were also continuing their upward move as the Greece rescue plan looked on track, despite fears over the nation's ability to sustain austerity measures.

Vedanta Resources was the highest climber in the sector adding 3.51 per cent whilst its peers BHP Billiton and Eurasian Natural Resources were also in the top 10 performers of the day with increases of 2.69 and 2.63 per cent.

The banks also were up as sentiment around the industry was lifted with Royal Bank of Scotland the top climber boasting a rise of 3.19 per cent. Lloyds Banking Group was also higher with an increase of 2.51 per cent.

Defensive stocks were out of favour with utility firms Severn Trent and United Utilities dropping by 0.71 and 0.66 per cent. The pharmaceuticals were also lower with Shire the heaviest casualty with a loss of 1.14 per cent and GlaxoSmithKline also shedding 0.50 per cent.

 

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