The FTSE 100 Index started the week on the front foot as traders shared relief in Asian markets that Beijing refrained from raising interest rates.
China’s inflation rate has jumped to a 28-month high of 5.1% but the country’s leaders wrapped up an annual economic meeting on Sunday with a pledge to control inflation while shifting the economy toward more stable, balanced growth.
The Nikkei and Hang Seng Index climbed by just under 1%, while the FTSE 100 Index added 35 points to 5847.9.
Resources stocks were the major beneficiaries of London’s rally as Kazakhmys climbed 42p to 1571p and Lonmin cheered 32p to 1889p.
The FTSE 250 Index was dominated by merger and acquisition activity, including at Wellstream Holdings after the oil and gas services firm backed an £800 million takeover offer from America’s General Electric.
GE’s latest proposal, which followed two rejected offers, caused shares in Newcastle-based Wellstream to rise 37.5p to 784.5p, up 5%.
Elsewhere in the energy services sector, John Wood Group announced an agreement to acquire PSN for 955 million US dollars (£600 million) and added that the deal will be significantly earnings enhancing.
Shares in the Aberdeen-based firm jumped to the top of the FTSE 250 Index, up 8% or 40.8p to 529p.
Discover more from London Glossy Post
Subscribe to get the latest posts sent to your email.
