Market Update
03/02/12 - 12:30
Anthony Grech, Head of Research, IG Markets
For the latest news and analysis you can now follow Anthony on Twitter at AnthonyGrech_IG.
The FTSE rose above the 5800 level as UK PMI services data came in better than expected. At 12pm (London time), the FTSE 100 was up 0.5% at 5822, up 0.5%, and the FTSE 250 was trading at 11,100.
UK stocks rose convincingly as the FTSE finally broke 5800 to trade at a high of 5824, not seen since August last year. The index was boosted by higher-than-expected PMI data for the services sector, at 56, up from 54 last month.
Insurer Admiral Group’s shares were up more than 7% today after the firm declared it had extended its existing UK car insurance reinsurance partnerships until 2014, with the cost of its arrangements unchanged. BT gained more than 3%, as its Q3 earnings were in line with expectations, helped by an increase in broadband subscribers. The stock didn’t rise as much as expected due to worries about its pension deficits, which increased to £4.1 billion for the quarter through December, from £2.5 billion at the end of September.
Rio Tinto was down more than 2%, following doubts about the sustainability of recent gains for miners across the board.
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