London Market Report
(Close): London's main index regained its poise on the back of stronger corporate and economic news. After Monday's heavy fall, the FTSE 100 closed up 36 points at 6,282.8, with other leading European eq next plat stock markets also returning to positive territory. Better-than-expected results from BP and ARM Holdings cheered investors, as did data showing that the European service sector was strengthening. Political uncertainty in Spain and Italy sparked a big sell-off on Monday. Heavyweight FTSE stock BP added 1.4% despite reporting a fall in full-year profits as it continues to pay the price for the Deepwater Horizon disaster. The results were better than many analysts had feared. UK computer microchip manufacturer ARM was one of the biggest FTSE 100 risers, up 4.4% after it reported huge demand for its chips that power Apple and Samsung smartphones. Banks also appeared to be back in favour after Chancellor of the Exchequer George Osborne threatened them with break up if they did not adhere to new ring-fencing rules. Barclays' rose 1.3% despite announcing that it would increase funds set aside to cover Payment Protection Insurance mis-selling. But Tuesday's positive economic and corporate news failed to help the pound as it continued its slide eqn plat against the US dollar and euro. Sterling has suffered amid fears of a triple dip recession and a credit rating downgrade. The pound fell to 1.15 euros, making a euro worth 86.8p.
London Market Report