FTSE flies as investors bet on global economic recovery
The FTSE 100 was up by more than a percentage point in early trading amid renewed confidence in the global economic recovery.
At 8:40am the flagship index was up 1.04 per cent.
Asian markets were up overnight and that confidence appears to have translated to a positive European open.
The FTSE 250 was up 1.47 per cent, driven in part by a share price rise of 59 per cent for defence firm Meggitt, announced this morning as the subject of a potential takeover bid.
Melrose and Rolls Royce Holdings were the biggest rises in early trading on the FTSE.
Eyes will turn towards PMI figures released later this morning as an indicator of the strength of the economic recovery.
Michael Hewson, Chief Markets Analyst at CMC Markets, said he expected PMI figures to be in clear positive territory but not as high as the unprecedented figures seen over the summer.
He said they were expected the readout to sit at 60.4, down from 63.9, due to staffing disruptions.
“Input costs are also rising, raising some concern that price rises could become more persistent and act as a brake on consumer confidence,” he said.
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