Member Article

Chinese data and Greek debt optimism lift markets

Sentiment was boosted today following strong economic data out of China suggesting fears
of an economic hard landing were overdone. The official purchasing managers index for the
manufacturing sector increased from 50.3 in December to 50.5 in January, ahead of forecasts that
had anticipated a level below 50 (and hence contraction). Further, investor were more comfortable
putting money to work on increasing Greek optimism, with the Greek Finance Minister Evangelos
Venizelos claiming that the country was “one formal step away” from completing a deal with private
sector bond holders.

With China the biggest consumer of metals globally, it was not surprising that mining and energy
companies were buoyant, the latter also receiving a boost as Iranian tensions ensured Brent Crude
was up 1.2% to $112.4.

Johnson Matthey, the world’s biggest supplier of catalytic converters, was boosted by an Interim
Management Statement (IMS) that showed the company was holding up well and that second half
profits should be slightly ahead of the first. Shares ended the day higher by 5.3% to 2159p. The
biggest gainers on the index was however ICAP, the inter-dealer broker announcing in its IMS that
full year profits would be towards the upper end of current market expectations despite a difficult
business environment as eurozone concerns subdue trading volumes. The shares put on 26p, up
7.7% to 362p.

The FTSE 100 posted triple digit point gains, higher by 1.9% to 5790.The German Xetra DAX and the
French CAC40 experienced gains in excess of 2%.

This was posted in Bdaily's Members' News section by John Dance .