FTSE surges forward on Eurozone deal

Monday, 10 May 2010 12:11

By myfinances.co.uk staff

The FTSE 100 has surged forward by 144.96 points, or 2.8 per cent, to 5,267.98 in early trading today as European policy makers unveiled an unprecedented loan package worth almost $1 trillion and a program of bond purchases to stop a sovereign-debt crisis.

Jolted into action by last week's slide in the euro to a 14-month low and soaring bond yields in Portugal and Spain, the 16 euro nations agreed to offer financial assistance worth as much as 750 billion euros ($962 billion) to countries under attack from speculators. The European Central Bank will counter "severe tensions" in "certain" markets by purchasing government and private debt.

British Airways Plc, Rio Tinto Group and Royal Dutch Shell Plc led gains on the FTSE 100 Index, as the benchmark gauge rallied by the most since April 2009. The measure tumbled 9.7 per cent from this year's peak on April 15th through May 7th amid concern that Greece's debt crisis will spread through the region.

British Airways, Europe's third-biggest carrier, rallied 5.7 per cent to 203.1p. Rio Tinto advanced 6.1 per cent to 3,318p and Shell climbed 2.5 per cent to 1,879p as metals and crude oil prices advanced.

Enterprise Inns soared 10 per cent to 118.5p after the Sunday Times reported that the UK's second-biggest pub owner is close to agreeing on a plan to refinance a £1 billion bank loan and may announce the deal as early as May 11th.

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