FTSE close: C&W down, Vodafone up

 

The London market staged a dramatic recovery today, inspired more by a rocketing open on Wall St than by the Bank of England.

The sign and logo of the London Stock Exchange

The Bank's monetary policy committee today opted for a £25bn boost to the quantitative easing programme, and the share prices reacted positively, with the Footise cancelling out its 40-point deficit of the morning.

The pound was relieved that the increase wasn't greater and gained against both dollar and euro to $1.656 and €1.114.

But it was a dramatic jump for the Dow Jones index on the open, that saw the FTSE 100 gain 17.7 points to 5,125.6 by the close.

Strong results from Cisco lifted US technology stocks, and an expansion in business productivity and a fall in jobless claims encouraged investors about the economy. The Dow was 151.75 points up at 9953.9 at the London close.

The European Central Bank meanwhile kept rates unchanged in Frankfurt while last night the US Federal Reserve said interest rates would remain at record lows for an extended period.

More defensive stocks were in vogue in London as investors looked to protect themselves from market volatility.

Telecoms firm Cable & Wireless led the fallers board, down 6.15% or 9.1p to 138.9p after plans to demerge its UK business were overshadowed by the firm downgrading earnings guidance for its Caribbean arm this year.

Vodafone in contrast was one of the Footsie's top risers, adding 1.45p to 137.45p, while BT - due to announce interim results next week - climbed 3.3p to 136.9p.

In the retail sector, Tesco surged 9.7p to 418.7p and Marks & Spencer rose another 2.6p to 364.1p as it continued to benefit from yesterday's better-than-expected results.

Among other so-called safer stocks, British American Tobacco and Imperial Tobacco added 34p to 1951p and 23p to 1814p respectively.

But hedge fund Man Group also joined the risers after a better than expected profit performance and an increase in assets under management. Man ticked up 1.8p in early trading as the firm also held its interim dividend steady. It later closed 0.2p down at 324.8p.

Alongside Cable & Wireless, British Airways and Royal Bank of Scotland were on the back foot ahead of results tomorrow.

Struggling BA shed 5.5p to 186.3p as markets braced themselves for a hefty first-half loss, while RBS was 1.26p lighter at 35.21p a day before the part-nationalised bank reclaims the spotlight with third quarter figures.

Broadcaster ITV meanwhile was the top riser in the FTSE 250 following a trading update today. It added 4.27p to 48p or 9.6% after it forecast a 4% rise in net advertising revenues in December and said it continued to beat BBC1 in terms of peak-time audience share.

The UK's biggest landlord, Grainger, went the other way as the firm announced plans for a £250m rights issue. Shares fell 17.8p to 253.6p or 6.6%.

Tomorrow's agenda

• Rentokil Initial reports its third-quarter results tomorrow.

• Tate & Lyle - the maker of Golden Syrup, sugar, and artificial sweetener Splenda - updates the market.

• British Airways issues its latest traffic statistics. Shareholders in the airline will be desperate for some good news ahead of potential strike action among staff at Christmas.

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