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FTSE surges past 6,000 to reach 18-month high

Dan Jones
Written By:
Dan Jones
Posted:
Updated:
02/01/2013

Strong data from China and a deal to avert the US fiscal cliff have helped push the FTSE 100 past the 6,000 mark for the first time since July 2011.

US lawmakers’ package to avert stringent budget cuts and positive manufacturing data out of China gave equity markets a boost on the first day of 2013 trading, the FTSE 100 initially rising 80 points to 5,980 at the open.

Those gains were then extended as UK-listed miners led the rally, the index standing up 2% at 6,016 by mid-morning as better than expected UK manufacturing data also helped bolster sentiment.

That represented the FTSE’s highest level since the 6,084 reached on 8 July 2011.

Resources companies Evraz, Eurasian, Rio Tinto and Vedanta all rose by between 5% and 6%, with Barclays also among the biggest risers with a 4% gain to 273p.

News of the fiscal cliff deal in the US had earlier prompted strong gains in overnight markets despite warnings the agreement provided only a temporary respite.

Hong Kong’s Hang Seng rose 2.9% to 23,312, with Japan’s Nikkei up 0.7% to 10,395. Anticipation of such a deal had helped the S&P 500 post a 1.7% gain to 1,426 on New Year’s Eve.


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