FTSE 100 rises on US confidence surge

Tuesday, 26 May 2009 12:00

The FTSE 100 rose sharply in afternoon trading to hit 4,411.72, 1.06 per cent higher than Friday's close.

The blue-chip index fell during the morning amid concerns North Korea would launch more missiles, escalating the tension in the region.

But a better-than-expected surge in consumer confidence in the US, now at an eight-month high, helped boost the FTSE 100 higher in afternoon trading.

The Dow Jones was also up by two per cent, reflecting the increased optimism sparked by the data.

Several defensive stocks performed well on the index, with British American Tobacco up 3.85 per cent and National Grid up 3.05 per cent.

A handful of mining stocks were also trading higher, with Eurasian Natural Resources up by 6.79 per cent and silver miner Fresnillo up by 2.54 per cent.

However, financial stocks dropped lower.

Lloyds Banking Group fell by 2.62 per cent, while Friends Provident dropped 2.51 per cent and Royal Bank of Scotland was trading 1.71 per cent lower.

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