THE FTSE 100 rebounded from two-month lows this morning, as a bout of fiscal stimulus from Japan and mining stocks drove the index up.
Polymetal, the Russian precious metals riser, was up more than five per cent after it posted a 40 per cent rise in annual revenues, while Eurasian Natural Resources also leapt after Citi upgraded its guidance on the company from “sell” to a “neutral”.
TUI Travel was up more than three per cent after brokers at Morgan Stanley backed the stock on Friday.
Capita, the outsourcing group, was the index’s biggest faller, slipping just over one per cent, while Marks & Spencer also dropped on suggestions the retailer is continuing to struggle on the high street.
Banks also weighed the FTSE down, with Barclays and Standard Chartered amongst the biggest fallers, down 0.45 per cent and 0.69 per cent respectively. Centrica rounded up the five biggest fallers, down 0.4 per cent.
Lloyds Banking Group also fell and HSBC’s shares were flat, with RBS the only significant gainer this morning.
Overall the index rose around half a per cent, following rises in Asian markets this morning as the Bank of Japan kicked off a bout of monetary easing. It had fallen to two-month lows on Friday after gloomy US job data.
Outside the FTSE 100, European newspaper publisher Mecom fell 30 per cent as it forecast no recovery in advert sales in its key Netherlands market for the rest of the year, while oil and gas firm Afren rose more than six per cent.