FTSE gains for second day
By myfinances.co.uk staff
The FTSE 100 Index gained 56.43 points, or 1.1 per cent, to 5,094.51 in early trading as stocks advanced for a second day after China's foreign exchange regulator said reports that it was reviewing its euro holdings are "groundless" and Man Group reported earnings that topped estimates.
The FTSE 100 has dropped 13 per cent from this year's high on April 15th on concern a sovereign-debt crisis in Europe is spreading, infecting global credit markets and hurting economic growth in the region.
China's State Administration of Foreign Exchange said today that Europe will remain a major investment market for the Asian country. The announcement followed a Financial Times report yesterday which claimed the administration met with bankers because of concerns about exposure to Europe.
Man Group climbed 2.5 per cent to 220.6p. The company said assets under management were "broadly unchanged" during the past two months and full-year profit fell less than expected.
BHP Billiton, the world's biggest mining company, advanced 3 per cent to 1,914p and Rio Tinto increased 2.9 per cent to 3,153.5p. Australian MPs are increasing the rate of return above which mining companies have to pay the resource profits tax to 11% or 12%, the Australian newspaper reported yesterday while European markets were open. The threshold may be boosted to about 7% to 8%, the Australian Financial Review reported.
The government had announced that the planned 40% tax will be imposed on resource companies' returns that exceed the rate on long-term Australian government bonds, currently about 6 per cent.
Copper rose for the fifth time in six days on the London Metal Exchange. Lead, nickel, tin and zinc also advanced.
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