Bank rally helps steady FTSE
The FTSE 100 was solid this morning despite the storm clouds – created by the Eurozone crisis – still hanging over markets.
Over the weekend G8 leaders stressed their “imperative” was to promote growth and jobs and gave verbal backing for Greece to stay in the euro.
But despite calls from the United States for immediate moves to boost growth, no sign emerged that Germany would soften its stance on austerity as the cure for Europe’s debt problems.
Hedge fund Manager Man Group – which has seen its stock dive in recent months – was the highest climber on London’s blue chip index, up 5.6 per cent.
The rise came after it announced that it was buying London-based investment firm FRM for $82.8m (£52.2m) as it tries to bulk up its assets and reduce dependence on its flagship computer-driven fund.
Miner Vedanta lifted by 2.8 per cent as commodity stocks were resilient. Another heavyweight miner, BHP Billiton, was up a shade over one per cent along with Anglo American.
Steelmaker Evraz was up 1.5 per cent, making it one of the five highest climbers in early trading. Engineers GKN and IMI both put on more than one per cent.
In banking Barclays was up 1.1 per cent, Lloyds 0.6 per cent and RBS 1.7 per cent. HSBC edged up by 0.6 per cent.
British Land was one of the biggest fallers on the index – down 0.4 per cent after investors gave it a weak reaction despite the company saying that its net asset value had increased. However it admitted that the UK market was tough and that the Eurozone’s woes were taking their toll.
United Utilities was off by 0.4 per cent while retailer Tesco edged down by 0.3 per cent.
FTSE 250 listed outsourcer Mitie saw its stock edge up after reporting record revenues. In Asia the Nikkei closed up 0.2 per cent and the Hang Seng slipped 0.1 per cent.
Across the Atlantic later April’s Chicago Fed index is due for release.