Positive Financial News Pushes FTSE 100 Index Towards 5300
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
In the mid-session, the FTSE 100 has risen about 53 points and is currently around the 5280 level (10.30 am London time).
Positive data from China kick-started a series of impressive gains for the mining sector this morning. Factory output in the country rose to a 19-month high in October, which was good news for miners as it pushed the price of metals higher.
The sector has so far posted the most points on London’s leading index with Fresnillo, Rio Tinto and Xstrata all making gains.
The good vibrations carried over to the retail sector with very good news for Sainsbury’s. The heavyweight grocer announced half-year profits of £342 million, a rise of 32.6% from last year.
This figure was towards the top of analysts’ expectations and Sainsburys appears to be in rude health, with plans to create an extra 10,000 jobs by March 2010. The grocer is currently up 3.91% at 340.40p.
It appears that the UK may soon be joining the rest of the major western nations in finally emerging from the recession it has experienced since the credit crunch, if today’s employment figures are anything to go by.
Data out today showed that while unemployment has increased in the three months to September, the rise is in fact the smallest since May last year, indicating that unemployment is slowing.
Both investors and analysts will be looking to US consumer confidence figures for confirmation that the good times will continue long enough for a prolonged assault on the 5300 levels.
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Good Luck!
DB
The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.
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