Wednesday, September 19 09:31:22
Miners helped Britain's main share index rebound early today after the Bank of Japan's action to kick-start its economy improved investors' appetite for equities. By 0754 GMT, the FTSE 100 was up 16.01 points, or 0.3 percent, at 5,884.17, erasing the previous session's losses after the BoJ boosted asset purchases in response to a slowing Japanese economy. Kazakh copper miner Kazakhmys was the top gainer on London's blue chip index, rising 3.1 percent as the mining sector climbed 1.3 percent in tandem with firmer metal prices. Mid-cap platinum producer Lonmin gained 9 percent after striking miners at its Marikana mine accepted a pay rise offer of up to 22 percent, ending a six-week strike.
The asset purchases in Japan follow central bank action from the United States and Europe, which aims to halt the slowdown in global growth and take the sting out of the euro zone debt crisis. "It perpetuates that (risk-on) environment. It is roughly the equivalent of three-months of what the Federal Reserve is doing, so it is a reasonably positive move," Marcus Ashworth, Espirito Santo's head of fixed income, said. Ashworth, who is responsible for macro strategy in London, said he would not expect China to follow suit, at least in the short-term.
The FTSE 100 is near six-month highs, buoyed by the central banks moves, which could provide a platform for politicians to step up to extinguish doubts over the global economic outlook. The FTSE 100's relative strength index is also indicating a bullish trend and analysts at Trading Central recommend to keep taking long positions on the index above 5,835 with targets at up to 5,960. Among individual risers, Britain's Smiths Group, whose products range from bomb detectors to bearings and seals, added 2 percent after it said full-year profit rose 7 percent. ( C) Reuters