FTSE rallies on economic reassurances from G20
By myfinances.co.uk staff
The FTSE 10 rose for the first time in four days this morning, ending the longest losing streak in seven weeks, led by energy shares and mining stocks after the Group of 20 nations pledged to safeguard growth while cutting debt.
G-20 leaders endorsed targets to cut deficits and agreed to pursue higher capital requirements for banks once their economic recoveries take root. Advanced economies will aim to at least halve deficits by 2013 and stabilise their debt-to-output ratios by 2016, according to a statement released as leaders finished meeting in Toronto yesterday. The G-20 said banks need to raise capital "significantly" and countries will be allowed to phase in new rules, with a goal of meeting new standards by the end of 2012.
The FTSE 100 gained 26.18 points, or 0.5 per cent, to 5,072.65 led by Premier Oil, which rallied 8.7 per cent to 1,285p after saying the Catcher East sidetrack well in the UK Central North Sea encountered "excellent quality" oil-bearing sandstones.
Lamprell increased 4.5 per cent to 225p after HSBC lifted its recommendation to "overweight" from "neutral," saying in a note that the company is "set to benefit from expanded UAE capacity as rig refurbishing activity improves."
BP advanced 3.7 per cent to 316p, rebounding from a 14-year low. The company stood by its August timeline for plugging the leak behind the biggest US oil spill on record, sticking with a plan that may set the company up to beat its own schedule.
The first of two relief wells aiming to intercept and plug the leak has reached more than 90% of its target depth and detected the metal casing of the Macondo wellbore, London-based BP said on June 25th.
Fresnillo, the world's largest primary silver producer, gained 2.9 per cent to 1,032p. Kazakhmys, Kazakhstan's biggest copper producer, increased 2.8 per cent to 1,097p. Copper, lead, nickel and zinc were among metals rising in London.
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