An upbeat start to 2012 saw the FTSE 100 Index climb nearly 2% at one stage as investors caught up with yesterday’s strong European trading.
Miners were the driving force behind the rally, with Rio Tinto and Kazakhmys up more than 3% to leave the top flight 53.7 points higher at 5625.9.
The strong start to the year followed purchasing managers’ reports from manufacturing firms in Europe and Asia that were not as bad as had been feared. As a result, the Dax in Frankfurt rallied 3% yesterday and was up by a further 1% today, although there were already signs the gains were tailing off.
Improving economic news in the US and continued growth in China has at least provided traders with some reasons for optimism in 2012, despite Europe’s ongoing debt crisis.
In the retail sector, Homebase and Argos owner Home Retail Group was 3.2p higher at 86.7p, while Superdry firm SuperGroup added 23.25p to 530.75p and delivery firm Ocado improved 1.95p to 56.35p, or 4%.
Back in the top flight, insurer Standard Life led a shortened fallers board of just five stocks after its shares fell 1.4p to 205.05p.
