Traders are betting that weaker economic growth will result in interest rate cuts before the end of ...
Traders are betting that weaker economic growth will result in interest rate cuts before the end of the year, and the FTSE rose as a result this morning, gaining 90 points to 4,185.
The surge was led by mining and media stocks, with Xstrata up 36p to 620p, Anglo American up 48p to 828p, and WPP up 24.5p to 460p.
These gains were significantly counterbalanced by the big 25.75p loss to 117p encountered by Royal & Sun Alliance after it reported results.
The company said first half earnings were down 18% on the same time last year, and it may have to sell new shares to fund the underwriting of new business next year, diluting existing shareholdings.
There were just three other stocks losing ground this morning, venture capitalist 3i, down 6.5p to 528.5p, Amersham, down 5p to 568.5p, and Marks & Spencer, down 2p to 328p.
The FTSE 250 mid-caps index has made gains this morning, up 33 points to 4,656, led up by a second day of strong gains by computer services firm Dimension Data.
The reseller of internet switches from Cisco Systems is up 2.25p to 26.25.
Enodis fell, however, after it said customers such as McDonald's Corp were not ordering new restaurant equipment as fast as previously and its shares dropped 7p to 53.5p.
Investors are also selling down Cambridge Antibody, which is down 20p at 630p.
Markets closed up firmly in New York yesterday, where the Dow Jones Industrial Average gained 182.06 to close at 8,456.15, and Nasdaq's Composite index gained 21.35 points to close at 1,280.90.
Tokyo's Nikkei 225 index shed points this morning, however, despite the weakening yen continuing to boost earnings for large exporters such as Sony and Toyota - the index dropped 34.83 points to 9,799.57 by the close.
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