Markets jumped this afternoon following a surprise US interest rate cut by the Federal Reserve. The m...
The FTSE 100 finished with a decent gain of 129.1 points to 5890.2.
The US Federal Reserve issued its fourth rates cut of the year of 0.5% to 4.5%. Despite being cheered by the boost to global markets some investors warned that the extent and nature of the cut suggests the US economy may be in a worse state than first thought.
Encouraging results from US technology bigwigs Intel and Texas Instruments had already cheered the UK market. Investors already had the impression the dust might be settling across global markets.
UK technology stocks, already in fine form after the spread of good corporate news, received the added rate cut boost and finished the session with solid gains. Sage led, up 52p to 278p, followed by ARM and Misys both gaining around 22%. Telecom stocks also posted good rises.
Fund manager AMVESCAP was the best non technology performer, up 225p to 1310p.
Predictably, old economy stalwarts took the brunt of the shift to the new economy and the FTSE 100 fallers were headed by BAT, down 25.5p to 525.5p. But only a handful of the losers suffered losses over 2%.
At midday in the US markets powered ahead, the Dow Jones grew 424.02 to 10640.82, the Nasdaq advanced 181.55 to 2104.77 and the Standard & Poor's 500 improved 51.01 to 1242.82.
53% see global growth slowing
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