A ROUND of successful debt auctions across Europe lifted the London market in the latest sign that a series of credit rating downgrades have been broadly shrugged off by investors.
The FTSE 100 Index closed 36.5 points higher at 5693.95 after debt auctions by Spain, Greece and Europes bailout fund drew solid interest from investors, while the Dax in Germany advanced 1.8% and Frances Cac-40 added 1.1%.
The optimism on markets came despite Standard & Poors decision to downgrade the credit ratings of several eurozone countries, including France, and a similar downgrade to the European Financial Stability Fund (EFSF).
Meanwhile, resource stocks gave support after Chinese economic data came in above expectations, with Chinese retail sales jumping 18.2% and fourth quarter gross domestic product growth beating expectations at 8.9%.
The pound dropped against the euro to 1.20, as the single currency was strengthened by the successful bond auctions.
However, sterling was up at 1.53 against the dollar, as traders ditched the safe-haven greenback amid optimism over the global outlook.
The biggest Footsie risers were Polymetal International up 38p at 1129p, Rio Tinto ahead 105p at 3694p, Intercontinental Hotels Group up 35p at 1255p and Fresnillo 46p at 1753p
The biggest Footsie fallers were Essar Energy down 45.4p at 127p, Man Group off 3.2p at 107.1p, Admiral down 16p at 862p and Icap off 5.8p at 325.6p.
