FTSE reverses decline as hopes rise over euro

Fri, 2nd Mar 2012

The leading share index in the UK was higher on Thursday as good news for Greece helped to lift sentiment. By the end of the session, the FTSE 100 was higher by 1 per cent, reversing the drop seen on Wednesday to finish at 5931.

The eurozone was boosted after The International Swaps and Derivatives Association decreed that the imminent agreement between private bondholders and Greece would not be considered a 'credit event'. However, it remains unclear as to what would happen if bondholders refuse to take a haircut. The European Council is due to convene on Thursday evening to discuss bolstering the rescue fund. Man Group were by far the biggest riser amongst the blue chips, soaring by 12.68 per cent after the hedge group announced that its outpouring of fund outflows had dramatically slowed and reported an increase in managed investments by the end of February. The news help to lift its peers, with Hargreaves Lansdown, ICAP and Schroders up by 4.51, 3.25 and 2.72 per cent respectively.WPP was another top performer of the day, rising by 2.99 per cent. The advertising giant smashed forecasts for both profits and revenue as it benefits from the increased demand in the Olympic year.At the wrong end of the table was Kazakhmys, shedding 4.2 per cent after announcing stagnant profits and predicting output levels would be unchanged for the coming year.Weir was the second heaviest casualty with a loss of 3.61 per cent after investors trod wearily as the engineering firm waited to hear what the Australian Takeovers Panel makes of its bid to acquire mining equipment manufacturer Ludowici.
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