The FTSE is in rude health today, up above the 5350 level in afternoon trading.
London’s leading index is up around 135 points (+2.6%) this afternoon, marking a fourth consecutive day of gains stretching either side of the bank holiday weekend in the UK. Resources companies are driving this surge after better-than-expected data from China’s manufacturing sector; China’s PMI rose to 51.7 from last month’s disappointing low of 51.2. It’s no surprise, therefore, that Kazakhmys, Xstrata, Rio Tinto, Antofagasta, Lonmin and Anglo American are all up between 4.5% and 6.5% on the day, as copper rose to a four-month high and other base metals advanced in similar style.
Despite the positive resources news, the two biggest gainers today are Cable & Wireless (+8.01%) and TUI Travel (+7.65%). Cable & Wireless was running hot on speculation that a competitor – potentially US telecoms giant AT&T – was preparing to make a bid for the company, while TUI Travel’s stock took off on reports that majority owner TUI AG is considering purchasing the shares it doesn’t already own. With today’s strong gains across all sectors it will be interesting to see if the FTSE can sustain its winning streak or whether investors will look to book short term profits immediately.
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