FTSE 100 surges to close higher

Wednesday, 03 December 2008 12:00

The FTSE 100 rallied in the last hour to close 1.14 per cent higher after another volatile day.

The UK market rose following a robust start to the US markets, as the Dow Jones rose by 1.33 per cent after opening.

Hedge fund Man Group saw its shares rise by 6.67 per cent, while pharmaceutical firm AstraZeneca was 5.37 per cent higher.

Stocks in the red this afternoon included Stagecoach, which dropped by 16.5 per cent after issuing a profit warning earlier.

Anthony Grech, research analyst for IG Index, said: "Any positive news that makes it through the gloom seems increasingly unlikely to fuel a sustained rally at the moment.

"Tomorrow, all eyes turn towards the MPC and the prospect of another dramatic rate cut, but even this may prove insufficient to turn the tide."

The monetary policy committee (MPC) of the Bank of England will announce their decision on the interest rate tomorrow, with a one per cent reduction expected by many analysts.

• Tags:
• news
,
• share prices