Investors scramble for bargains after last week’s worries felled the FootsieComments Off on Investors scramble for bargains after last week’s worries felled the Footsie
The capital’s blue-chip benchmark — which lost 2.5% last week amid speculation of a US rate hike as well as worries over Greece — rose 38.80 points to 6779.38 or 0.6%, as investors bought into a range of stocks including Next, Burberry, Prudential and industrials firm Meggitt.
Stocks in China roared to their highest for more than five years as Premier Li Keqiang said Beijing’s room for manoeuvre on policy was “relatively big” to stimulate the world’s second-biggest economy if growth risked breaching a “lower limit” or damaged employment.
Across Europe, major indices led by Germany’s Dax showed gains of up to 1% as stocks continued to be buoyed by the European Central Bank’s €1.1 trillion (£784 billion) money-printing programme.
The euro pushed to a 12-year low against the dollar — giving a fillip to the region’s exporters — amid speculation that the US Federal Reserve will refine its forward guidance this week.
IG market analyst Alastair McCaig said: “It is not often that US markets have played second fiddle to their European counterparts, but the driving force of the European QE scheme continues to see them set the pace.”