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Airlines among FTSE winners as shares rally
by Chris Marshall on Sep 10, 2013 at 09:49
Shares rallied higher and the oil price continued to drop back as markets cheered a double-whammy of improved economic data from China and signs that a US attack could yet be averted.
The oil price added to yesterday’s losses, with Brent crude futures slightly lower at $112.99 per barrel, after US president Barack Obama said plans to attack Syria could be put on pause if Bashar al-Assad's regime agreed to put its chemical weapons under international control.
Shares rose across Europe and Asia, with Britain’s FTSE 100 up 0.85% to 6,585.
Helping sentiment was more robust data from China, with stronger industrial output, investment and retail sales data for August further diminishing fears over a rapid and destabilising slowdown in the world’s second largest economy.
Economists suggested that the Chinese economy was now ‘bottoming out’ after upbeat export figures and a more subdued inflation reading. HSBC’s Hongbin Qu noted: ‘Coupled with the recent improvement in China’s PMIs, the fresh data implies that growth will likely stay above 7.5% in the coming quarters.’
In London, airlines, which have been under pressure recently, led the gains as the easing of tensions over Syria knocked oil prices. IAG was up 4% to 317p and Easyjet 3.6% higher to £13.13.
Glencore Xstrata shares were up 4% to 334p, after the commodity group said it expects $2 billion of synergies from its recent merger. The company, which holds an investor day today, also announced plans for a secondary listing in South Africa.
Shares in Lloyds Banking Group hit a three-year high on Tuesday amid speculation the British government could start selling down its 39 percent shareholding this month.
Reuters quoted sources saying that the government is considering selling around a quarter of its holding in the bank, possibly in the next 7 to 10 days.
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- easyJet plc (EZJ.L)
- International Consolidated Airlines Group SA (ICAG.L)
- Glencore Xstrata PLC (GLEN.L)
- Lloyds Banking Group PLC (LLOY.L)