FTSE edges upwards as fears over US economy linger

Wed, 10th Apr 2013

The top share index in the UK opened the week with a stronger performance than it ended last week, with a cautiously optimistic session helping to eradicate the poor employment figures reported in the US on Friday. By the close of trade the FTSE 100 was higher by 0.43 per cent finishing at 6276.

Global markets were decimated last week as the US economy which had looked as if it were making a strong recovery hit a couple of stumbling blocks as the number of new jobs created stuttered and numbers of jobless claims rose far higher than expected. However, whilst it certainly created pause for thought, it has had the effect of reassuring investors that the Federal Reserve will not make any attempt to rein in its quantitative easing programme in the near future.

Also edging investors over to the cautious side of optimism was the opening of the latest earnings season, with some market heavyweights such as JP Morgan due to release their figures later this week.

Closer to home, a sentiment index in the eurozone returned a poor result, with inconclusive elections in Italy and the difficult bailout in Cyprus deflating the mood across the continent.

The strongest performer of the day was Polymetal, higher by 5.25 per cent after it revealed strong results for 2012, showing a climb of 40 per cent in revenue. The precious metals giant pushed its dividend up by more than half in response.

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