Thursday 8 December 2016

FTSE rises as IMF upgrades UK growth

Sean Duffy/Reuters

Published 05/10/2016 | 02:30

A man looks up at electronic ticker tape showing the FTSE 100 (in green) inside the London Stock Exchange. Photo: PA
A man looks up at electronic ticker tape showing the FTSE 100 (in green) inside the London Stock Exchange. Photo: PA

London's FTSE 100 index rose highest of the major European markets yesterday as investors responded to news that the IMF had upgraded projected GDP growth for the UK this year.

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The index was up just over 1pc at yesterday's close.

British Prime Minister Theresa May said yesterday that Britain's economy was strong with more positive growth rates than some had expected and, when asked about the fall in sterling, added that currencies "of course go up and down".

"If you stand back and look at the fundamentals of our economy, which are strong, if you look at the other economic data that has been around in recent weeks, if you look indeed at the most recent forecasts now coming out for growth in our economy this year, all of that is more positive than people had expected it to be and predicted it to be."

Other European markets also gained, with Germany's DAX rising 0.65pc and the CAC was up 0.7pc in France. In Dublin, the ISEQ overall index of Irish shares gained 0.65pc, or 39.26 points, rising to 6072.97.

Food producer Total Produce was the standout performer, with the firm's share price rising by almost 14pc. Travel group Hostelworld rose by 3.6pc, while CRH was up by 3.5pc.

Investors responded positively to the news that food producer Aryzta was to withhold the bonus of ceo Owen Cillain pending an upturn in the company's fortunes.

Aryzta's share price rose by 2.75pc by yesterday's close.

Oil and gas exploration firm Petroneft fell again as the company struggled to shake off concerns about its revenue growth. The Irish/Russian firm's value dipped by over 13pc.

Irish Independent

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