FTSE up as Greek D-Day arrives
Miners led the FTSE 100 upwards this morning as China moved to stimulate more growth in its economy and Eurozone chiefs were poised to finally sign a bailout agreement to save Greece.
China’s central bank cut the amount of cash banks must hold in reserves, boosting lending capacity for the second time in nearly three months in a bid to shore up the slowing economy.
That was an encouraging sign for miners who rely on China to fuel the demand for the natural resources.
Also in the resources sector investors were eyeing the move by Iran to halt its oil sales to Britain and France, seen as retaliation against tightening EU sanctions.
The decision came as a team of UN inspectors flew to Tehran to press the Islamic Republic over its disputed nuclear programme.
On London’s blue chip index miner Antofagasta was up 2.2 per cent with BHP Billiton also nudging up just over two per cent.
BP and oil services company Amec also lifted by more than two per cent. BP rose as the oil price lifted in reaction to the Iran tensions.
Banks were boosted by the imminent Greek deal, which will give Greece a €130bn bailout fund, with RBS up 1.8 per cent, Lloyds 1.7 per cent and Barclays 0.6 per cent.
On the down side some utility companies were slightly off with Severn Trent down 1.1 per cent and United Utilities, National Grid and Scottish and Southern Energy down by just under one per cent.
European equities surged to their strongest level for seven months, with the European mining index up 1.9 per cent.
In Asia the Nikkei closed up 1.08 per cent and the Hang Seng down 0.3 per cent.
Meanwhile ratings agency Standard & Poor’s reaffirmed Japan’s Triple-A rating but said that it needed to improve its debt situation.
Trading volumes across markets today was expected to be light as US markets are closed for Presidents Day.