Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Fresnillo flies as FTSE extends its breather

Fresnillo flies as FTSE extends its breather

Most European indices rose after reports showing improvements in German and French economic growth, but Britain’s FTSE 100 lagged behind.

Germany’s economy grew by 0.4% in the last quarter of 2013, while France registered GDP growth of 0.4%, according to preliminary statistics.

The figures were slightly better than expected, prompting speculation that the European Central Bank may now resist a rate cut in March. ‘Marginally higher growth rates in Germany and France (0.3%) make it somewhat less likely that the unexpected fall of inflation causes the ECB to lower its key interest rates in early March,’ commented Joerg Kraemer of Commerzbank.

German and French benchmark indices rose by around 0.4%, while the euro was flat at $1.3680.

In London, the FTSE 100 traded slightly lower at 6,653.

At the top of the index, Fresnillo (FRES.L, up 3.7% to 957p) and Randgold (RRS.L, up 1.2% at £47.47) benefited from gains in the spot prices of silver and gold, with the two precious metals up 2.1% to $20.88 and 0.5% to $1,309 per ounce respectively.

The FTSE 100 had snapped a six-day winning streak on Thursday, as investors sold shares in Rolls Royce and Tate & Lyle after disappointing financial updates.

The Footsie’s gains of around 2.3% so far in February come in sharp contrast to January’s 3.5% sell-off, which was prompted by fears over the health of emerging markets and the impact of the gradual end of US stimulus.

Next week there will be plenty of major economic data to test investors’ nerves, with reports on Chinese manufacturing and US housing among the highlights.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play HSBC's Stephen King warns of 'enormous' Brexit deficit danger

HSBC's Stephen King warns of 'enormous' Brexit deficit danger

Brexit will weaken the economy, fail to boost exports and lessen the country's ability to fund its 'enormous' deficit, according to HSBC's senior economic adviser Stephen King.

Play Premier's Smith: electricity and water can be a good mix

Premier's Smith: electricity and water can be a good mix

Exposing your person to electricity and water simultaneously is ill-advised, but what about your portfolio?

Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

Your Business: Cover Star Club

Profile: how to control your destiny in an age of regulation

Profile: how to control your destiny in an age of regulation

‘RDR was good news to us because it aligned our practices with the industry,’ says Courtiers boss Jamie Shepperd

Wealth Manager on Twitter