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FTSE gains on Greek vote; Cable & Wireless soars
UK index tops 5,900 as Greek lawmakers approve a package of austerity measures to secure a €130 billion (£110 billion) bailout.
Britain’s FTSE 100 advanced on Monday after Greek lawmakers approved a package of austerity measures demanded by Greece’s international lenders in return for a €130 billion (£110 billion) bailout.
The UK index of blue-chip shares rose 0.9%, or 53 points, to 5,905 and the All Share index moved 0.88%, or 27 points, north to 3,051. See the FTSE’s performance and the index’s top winners and losers.
Violence breaks out in Athens
Coalition parties expelled more than 40 deputies for failing to back the measures, which included 15,000 public-sector job cuts, the liberalisation of labour laws, and lowering the minimum wage by 20% to 600 euros a month.
Meanwhile, violent street protests erupted outside the parliament in Athens, where dozens of arson attacks against shops and banks also took place.
‘There is no cause for major relief: in effect parliament only decided not to denounce further aid payments at this stage,’ warned Lutz Karpowitz, strategist at Commerzbank.
He added that in light of the ‘explosive’ political situation, opponents of the reforms could come to power in elections in April, in which case ‘everything would start all over again’, as each tranche of the bailout package has to be released individually.
Nonetheless, stock markets elsewhere in Europe also welcomed the move: Germany’s DAX index added 0.59% to 6,732, France's CAC 40 index gained 0.95% to 3,405, and the FTSEurofirst 300 index of top European shares was 0.78% higher at 1,072.
The euro strengthened 0.53% versus the dollar to $1.328, as borrowing costs dropped for Italy and France – the eurozone countries seen as being most at risk of succumbing next to the debt crisis. The yields, or implied interest rates, on perceived ‘safe haven’ US, UK and German debt rose.
Resources stocks climb
Miners topped the leader board on the FTSE 100, as commodities prices gained. Anglo American (AAL.L) took on 90p to £28.37, Vedanta Resources (VED.L) improved 29p to £12.90 and Kazakhmys (KAZ.L) hardened 27p to £11.51.
BSkyB (BSY.L) gained 5p to 698p as Rupert Murdoch’s News Corp, which holds a 39% stake in the broadcaster, was rocked by another scandal as five journalists from the Sun newspaper were arrested in a corruption investigation.
On the FTSE 250, Cable & Wireless Worldwide (CWP.L) rocketed up 5.5p, or 28%, to 25.2p after mobile phone operator Vodafone (VOD.L) – a member of Citywire Top Stocks® – said it was considering a £700 million bid for the telecoms group. Vodafone edged up 1p to 174p.
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- Anglo American PLC
- Vedanta Resources PLC
- Kazakhmys PLC
- Lloyds Banking Group PLC
- Barclays PLC
- British Sky Broadcasting Group PLC
- Cable and Wireless Worldwide PLC
- Vodafone Group PLC
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- Week Ahead: a ‘pleasant interlude’ and a mighty market mover
- FTSE pulls back as Greece frustration flares
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by Gavin Lumsden on Apr 16, 2014 at 15:17