FTSE climbs as hopes for European stimulus revive

Mon, 29th Apr 2013

The top share index in the UK moved upwards on Tuesday as weak economic data from Europe brought hopes of fresh monetary stimulus back to life. By the close of trade, the FTSE 100 was higher by 2 per cent reaching 6406.

The composite purchasing managers' index in the eurozone was revealed to be unchanged in April, remaining static at 46.5 per cent. Whilst this could be seen as positive, especially bearing in mind recent weak results from heavyweight economy Germany, in reality any score below 50 means no growth has occurred.

But the 19th drop out of 20 months doesn't necessarily spell disaster for the region as markets climbed over renewed speculation that the European Central Bank could reconsider their stimulus measures.

With many stocks ending the day in the blue, the bottom of the leaderboard was dominated almost entirely by the mining sector, still languishing in the doldrums after poor results in the Chinese manufacturing PMI. The figures follow poor GDP figures for the country, released last week which pointed to slower than expected expansion.

Fresnillo was the worst performer, down by 2.15 per cent whilst Antofagasta, Randgold Resources and Eurasian Natural Resources were all also in the bottom five, dropping between 0.95 and 0.63 per cent.

Tullow Oil was the remaining stock out of the bottom five. The blue chip oil explorer announced that it had abandoned an expedition and plugged a well in French Guiana after drilling failed to find any hyrdocarbons as hoped.

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