FTSE 100 surges on US hopes
Friday, 26 Sep 2008 17:58
The FTSE 100 surged over 100 points
The FTSE 100 surged over 100 points to close two per cent higher on hopes a rescue plan for the US was near agreement.
Insurers led the risers on the blue-chip index, with analysts speculating the fall of giant AIG may open up a larger share of the market to its competitors, and bid rumours for RSA Insurance, which gained 11.1 per cent.
Aviva rose 9.9 per cent and Old Mutual was up 12.6 per cent by the end of the day.
Energy stocks also rose, with BP, Royal Dutch Shell and Tullow Oil all ending higher.
Mining stocks fell on weaker metals prices, while retailers were also down on economic uncertainties.
Marks & Spencer slipped 1.4 per cent, while Tesco fell 2.4 per cent on the blue-chip index.
Ryan Kneale, market analyst at City bookmaker BetsForTraders.com said: "The markets are very nervy today with everyone focusing on the bailout across the Atlantic.
"Whilst this won't spell the end of the credit crisis, it will stop the bleeding enough to allow a slow recovery."
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