FTSE rockets despite murmurs of changes to US policy

Fri, 12th Apr 2013

The leading share index in the UK moved upwards on Wednesday despite the revelation that the US had been considering moving towards a change in their economic policy. By the end of the session the FTSE 100 was higher by 1.17 per cent, reaching 6387.

The US economy was showing strong signs of improvement until last week when it executed a dramatic u-turn with rising jobless claims and falling number of new positions being created. Experts had been predicting that the Federal Reserve Open Market Committee would take a tough approach and look to slow down their pace of purchases. The publication of the latest set of minutes would seem to support that view but there has been little impact in the markets as a result. This is primarily because, despite the FOMC minutes seemingly containing bad news, most believe that the economic landscape has changed dramatically since there and previous measures discussed will need to revisited.

In other market news, China was under the spotlight after it revealed an unexpected trade deficit, with more money flowing into the market as the superpower ramped up its imports.

WIthin the eurozone, Spain was under fire yet again after the European Commission pointed towards the country's finances and said that the change was 'running out of steam'.

On the leaderboard, the travel sector was performing particularly well with easyJet flying to the top of the pile, climbing by 6.65 per cent. Its peer IAG was also on the front foot, rising comfortably.

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