Footsie finishes on a high despite US data

Saturday 28 April 2012

Weaker-than-expected US gross domestic product figures and a downgrade for Spain failed to stop world markets finishing the week on a high .

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The FTSE-100 index closed 28.39 points ahead at 5777.11, meaning it has recouped all of the losses it suffered on Monday when political uncertainty in Europe triggered a rout.

The Dow Jones industrial average was 0.2% higher as the London market closed, despite figures showing the world's biggest economy grew at 2.2% in the first quarter of 2012, compared to 3% the previous quarter and disappointing hopes of a 2.5% rise.

The pound was up against the dollar at 1.62 after the weaker GDP figures prompted speculation of more quantitative easing. However, sterling was down against the euro at 1.23.More strong results, this time from Samsung and Amazon, helped buoy traders' spirits.Banks shrugged off the downgrade to Spain and were among the biggest risers on the Footsie index.Barclays was up 5%, or 10.1p, at 223.1p despite a stormy annual meeting with shareholders upset about high levels of pay.Royal Bank of Scotland rose 0.8p at 24.4p but Lloyds Banking Group was slightly lower, down 0.3p at 31.2p, after the taxpayer-backed bank revealed it was no longer in exclusive talks with Co-op over a bid for 632 branches it is being forced to spin off.FT and Penguin owner Pearson and advertising giant WPP posted trading updates but shares in both were little changed after they reinforced City forecasts.Pearson rose 17p to 1167p after it said it expects full-year sales and operating profits to grow in line with forecasts.WPP was 6p higher at 844p as it said first-quarter profits and operating margins were above budget and ahead of last year.Outside the top flight, shares in UK Coal were up 10% after it hailed its recovery plan while reporting pre-tax profits of £58 million for 2011.The South Yorkshire-based group said it benefited from a 25% rise in coal prices and a 4% increase in production.However, UK Coal is considering closing its Daw Mill mine near Coventry, which employs 800 staff, by 2014 when current coal panels will have been exhausted. The shares rose 1.4p at 14.6p.The biggest Footsie risers were Man Group up 13.3p at 107p, CRH up 48p at 1268p, and Icap ahead 13.9p at 382.9p.The biggest Footsie fallers were Polymetal International down 21p at 894p, BT off 3.2p at 212.9p, Shire down 27p at 2013p, and Unilever off 26p at 2109p.

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Footsie finishes on a high despite US data

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