FTSE close: Arm up; Rates news welcomed

 

17.15 (close)

People walk past London's Stock Exchange

The FTSE 100 Index pushed back past the 6000 mark today after it was boosted by strong corporate results in the US and gold soaring to record highs.

World markets pushed higher as investors took heart from better-than-expected results from giants such as household goods manufacturer Johnson & Johnson and investment bank Goldman Sachs in addition to surging demand from emerging markets.

Miners and energy companies led the FTSE 100 up more than 2%, or 125.4 points to 6022.3, as gold pushed above 1500 US dollars per ounce for the first and silver also made gains.

The pound was up to 1.64 against the dollar, which was driven down by the strength of commodities. But sterling was down to 1.13 against the euro after speculation that the European Central Bank would hike interest rates in the eurozone.

The strong results from the US, helped markets shrug off Monday's shock downgrade of the US's debt outlook from key ratings agency Standard & Poor's.

The Dow Jones Industrial Average was pushing to fresh two-and-a-half year highs as the London market closed with investors also cheering figures from the likes of Yahoo! and technology giant IBM.

The S&P move was largely behind the fresh high for gold prices today as investors flocked to the safe-haven investment and helped other commodities rise in value.

Miners benefiting included Xstrata, up 71.5p to 1530p, and Antofagasta ahead 73p to 1390p.

Technology firm Arm Holdings topped the leader board - up 32.5p to 608p - after strong first quarter earnings from US chip company Intel.

Reckitt Benckiser was also near the top of the Footsie risers board after the Cillit Bang-to-Dettol firm delivered better-than-expected first quarter figures. This helped shares recover from recent losses after its boss Bart Becht announced his departure. Its shares were up 125p to 3302p.

There were only a handful of blue chip firms in the red - led by publisher Reed Elsevier, down 9p to 528.5p.

The stocks bucked the wider rally as a number turned ex-dividend today, meaning new investors are not entitled to the next dividend payout.

Outside the top flight, Home Retail Group offered some relief for investors after news of a 13% fall in profits came in line with recent reduced guidance. Shares rose 5% or 11.5p to 220.8p.

This helped fellow FTSE 250 stock Dixons Retail gain 0.5p to 13.7p and B&Q owner Kingfisher lift 10.2p to 277.3p in the FTSE 100.

Pinewood Shepperton shares were 6% or 11.1p ahead at 202p after the film studios business revealed a further takeover approach to add to the one already received from major shareholder Peel Holdings.

The biggest Footsie risers were Arm Holdings up 32.5p to 608p, GKN ahead 11p to 207p, Antofagasta up 73p to 1390p, and Weir Group ahead 89p to 1846p.

The biggest Footsie fallers were Reed Elsevier down 9p to 528.5p, SAB Miller off 19.5p to 2200.5p, Essar Energy down 3.6p to 434.6p, and Legal & General off 0.9p at 115.8p.

15.00: The Dow has opened up 160 points (1.3%) at 12,427.7 following an impressive showing in London with the Footsie charging through the 6,000 barrier.

It is currently 119.3 points higher at 6,016.2 points.

13.15: A lunchtime update - the FTSE 100 is back above 6,000, rising 127.77 points to 6024.64 so far today.

Sentiment has been helped by news that the Bank of England is no closer to raising interest rates.

In the corporate diary, Argos parent Home Retail Group has reported a 13% plunge in profits. Group sales were down 3% at £5.85bn, encompassing a 5.6% drop in like-for-like sales at Argos, and a 0.3% fall at Homebase.

Shares in Home Retail were up 9.9p at 219.2p as the results met City forecasts. The firm maintained its annual dividend at 14.7p. Here's more.

On Wall Street later this afternon, the Dow Jones is expected to open higher. Check back for opening prices from half past two.

11.20:

We have more on this month's interest rate decision which signalled that a rise remains as distant as ever.

Stocks got a boost after MPC minutes confirmed members once again voted six to three in favour of holding rates at record low 0.5%.

'The minutes have boosted hopes that a rate hike is now unlikely to come next month.' commented Joshua Raymond, market strategist at spreadbetter City Index.

'Statements such as "an increase in the bank rate in current circumstances could adversely affect consumer confidence" will give both homeowners and consumers a nice boost as we head into the bank holidays.'

The FTSE 100 is up 122.9 points at 6,019.8.

Brent Crude is trading at near to £122 a barrel.

09.55:

The FTSE 100 made strides today, following key US shares higher with miners up and investors welcoming news that the Bank of England is no closer to raising interest rates.

The Footsie was 95.26 points higher at 5992.13 in early trading. Highest riser was IT hardware company Arm Holding – up 24.5p, or 4.3%, at 600p.

Arm was helped by strong results by US rival Intel, which reported stronger spending by businesses on IT.

Miners made up the bulk of the FTSE 100 leaderboard. Antofagasta, 41p up 1,358p, Xstrata, 42.5p at 1,501p, and Vedanta Resources, 54p up at 2,321p, all made gains.

Sentiment was helped by minutes from the April meeting of the Monetary Policy Committee which confirm that members once again voted six to three to keep rates on hold at 0.5%.

The pound this morning was $1.6378 compared to $1.6313 at the previous close. Against the euro, the pound was €1.1346 compared to €1.1392 at the previous close.