Shares remain buoyant after Chancellors statement
Equity markets traded in a yo-yo fashion on Tuesday as investors and traders digested a variety of data and news from across the globe, opening lower before posting midday gains, then losing again by mid afternoon and eventually closing higher.
Markets opened with updates from Euro leaders, who were continuing with plans to frame the rules of a leveraged stability fund, a solution the markets fear will get off the ground as there appears little appetite to fund it from outside of Europe.
Although most eyes in the UK were on George Osborne’s Autumn Statement (or mini budget) and subsequent revised growth expectations, sentiment was being driven largely by the noises emanating from Brussels and Rome. Italy sold new debt at a record level, touching 8% which concerned markets and despite rumours of efforts falling short on expanding the EFSF, there was no new news from the Eurozone’s leaders.
The FTSE 100 closed 24.2 points higher at 5337, a gain of 0.46% albeit somewhat behind it’s European and US peers.
Shares in International Consolidated Airlines, the parent of British Airways, were amongst the worst performers for much ofthe day, but ended the 0.6p day at 145.2p. This came after it’s strategic partner in the OneWorld alliance, American Airlines, filed for Chapter 11 Bankruptcy in the US. IAG welcomed the decision though as it meant the group could continue to operate for the time being.
Elsewhere, Randgold Resources bounced 5.8%, following a disappointing trading update the previous day that saw them shed more than 7%. Shares in the South African gold miner rose 360p to close at 6600p.
Despite recent optimism industrial metal prices were weak, Copper and Aluminium in particular posting losses, but oil remained stubbornly strong, gaining 1.5% before ending the session at $110.5
This was posted in Bdaily's Members' News section by John Dance .
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