Buoyant stocks make healthy gains again
Shares in London gained again, initially buoyed by hopes the Federal Reserve in the US would implement further quantitative easing if signs of a weak economy continued. In a win-win scenario for investors, there was also better than expected employment data in the US and Germany, plus a larger than expected increase in US factory orders for July.
In the UK, the FTSE 100 gained a further 126 points, closing at 5395.5, to post a 5% increase in just two trading sessions. It was led for most of the day by Smith & Nephew, following takeover rumours and the shares being tipped by Deutsche Bank. By the close though, it was broker Hargreaves Lansdown whose shares performed best, a 25p advance to 432p was welcomed by shareholders who had seen a 33% decline in the share price over recent weeks.
Elsewhere in the FTSE 250, shares in Bwin (the world’s largest listed online gaming company) and office supplier Regus, both gained over 13% following good results announcements.
Less positive though was the continued rise in Brent Crude, which rose 1% to $114.6 a barrel, representing a 10% gain in just two weeks. Given the developed world’s dependence on the black stuff, many observers had been hoping the previously suppressed price would ease inflation, input costs and ultimate help support the wider economy.
This was posted in Bdaily's Members' News section by John Dance .
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