FTSE flat as Wall Street drains gains

Mon, 22nd Apr 2013

The top share index in the UK ended the day more or less where it started after a weak opening in the US markets obliterated gains picked up from Europe. By the close of the session, the FTSE 100 was practically flat, ending down by 0.01 per cent at 6243.

After several days of downward movement, trading initially picked up on Thursday boosted by developments in the eurozone. Portugal revealed that it would be implementing further spending cuts which had been approved by parliament. The cuts will save 0.5% GDP leading to savings of €800 million.

Also in Europe, there was good news for Spain after it managed to smash its targets in its debt auction, selling €4.7 million rather than the €3.5 to €4.5 million it was aiming for.

However, the gains that were made in the FTSE on the back of good news from the eurozone were undone when Wall Street opened weaker for the day, despite strong earnings from heavyweights such as Morgan Stanley.

On the leaderboard, pharmaceutical manufacturer GlaxoSmithKline was performing well, rising by 3.17 per cent and only beaten by Tullow Oil. The rise was prompted by news that its new treatment for COPD, Breo Ellipta, had received approval from the FDA.

Tullow Oil was the star of the day, higher by 4.22 per cent after it was highlighted by Societe Generale as a stock to buy, with plenty of potential after recent uncertainty in the market around the company due to its strategy of being exploration-led.

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