FTSE starts week on a high

Tue, 30th Apr 2013

The leading share index in the UK ended the day higher on Monday as good news from the eurozone coupled with some positive data from the US to create a feel-good factor in the market. By the close of the first session of the week, the FTSE 100 was higher by 0.49 per cent reaching 6458.

After months of uncertainty and deliberation, the FTSE opened to the news that Italy had finally managed to create a coalition government, confirmed publicly over the weekend. The move ends months of intense speculation and allows Italy to move on with healing its fractured finances. The sovereign debt sale on Monday morning saw the lowest rates for Italy since October 2010.

In other news, the US pending home sales and consumer spending figures provided a boost to investors ahead of a key Federal Reserve meeting on Tuesday. Contrary to previous predictions, the two day summit is not expected to result in any changes to monetary stimulus policy, largely due to the poor GDP results announced last week in the US.

However, despite the upbeat sentiment, there were still some notable fallers.

Croda International languished at the foot of the table, lower by 3.01 per cent. The speciality chemicals company was rocked by a downwardly-revised target price from UBS who pointed out that the shares were still priced at a 16 per cent premium compared to the rest of the industry.

Reed Elsevier was also lower, shedding 1.81 per cent after a downgrade by Citigroup.

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