FURTHER signs of recovery in the US and renewed hopes of a bail-out for Greece helped boost world markets.
The FTSE 100 Index rose 19.7 points to 5905.1 after German chancellor Angela Merkel’s office said she was optimistic that a second massive rescue package for Greece will be agreed on Monday.
Sentiment was further buoyed after the US Conference Board said its index of leading economic indicators rose for the fourth month in a row in January, which bodes well for future growth.
Figures also revealed that US consumer prices rose in the month, suggesting strong consumer demand.
The Dow Jones Industrial Average in the US, which had closed at a near-four year high yesterday, pushed 0.2% higher as the London market closed. France’s Cac-40 and Germany’s Dax were up more than 1%.
The pound was down against the euro at 1.20 after the single currency was strengthened by hopes for Greece. But sterling was up at 1.58 against the dollar as appetite for the safe-haven currency waned.
The biggest Footsie risers were CRH up 67p at 1343p, Vedanta Resources ahead 57p at 1312p, Weir Group ahead 82p at 2051p, and IMI ahead 33.5p at 960p.
The biggest Footsie fallers were Ashmore down 7.5p at 390.6p, G4S off 4.1p at 280.1p, Essar Energy down 1.3p at 122.3p, and British American Tobacco off 33p at 3115p.
