FTSE buoyed by energy stocks
Upbeat economic data across the Atlantic and strong energy stocks helped to keep the FTSE 100 on track today despite relative weakness in Europe.
US blue chips added 0.4 per cent overnight after weekly jobless data showed the US labour market remained on the mend, with the Dow approaching levels not seen since before the 2008 collapse of Lehman Brothers.
But investors were also digesting less positive figures that showed the Germany economy had contracted by 0.2 per cent in the fourth quarter.
In the UK Bank of England Policy committee member Paul Fisher exclusively told City A.M. that the bank could pump more quantitative easing into the economy.
He said the uncertain outlook meant that the bank needed to be prepared to act decisively if the economic recovery was derailed.
Meanwhile the UK’s GDP figure remained unrevised for the fourth quarter, shrinking by 0.2 per cent.
Heavyweight integrated oil stocks, led by a 1.1 per cent advance in BP, added the most points to the FTSE 100 as Brent crude rose towards $124 a barrel amid worries over cuts in Iranian supply.
But outsourcing group Capita was the biggest riser, up more than three per cent after an upbeat statement yesterday saying that its order book was brimming.
Property group Hammerson was up 2.5 per cent while hedge fund manager Man was the most significant financial stocks climber, up 1.8 per cent. Engineer GKN edged up by 1.7 per cent and broadcaster ITV 1.5 per cent.
On the down side consumer giants Unilever and Reckitt Benckiser were down by between 2.5 and three per cent.
Miners Antofagasta and Evraz were off by more than two per cent.
Lloyds was the third biggest faller, down 2.4 per cent, after reporting losses of £3.4bn. The bank painted a picture of a tough road ahead in 2012.
RBS also fell by more than two per cent having yesterday reported heavy losses as the bank restructures under chief executive Stephen Hester.
But Barclays bucked the trend with a rise in its share price of more than one per cent.
In Asia the Nikkei closed up 0.5 per cent and the Hang Seng 0.1 per cent.
Later today January US new home sales figures are due for release.