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FTSE 100 ticks up; Rothschild quits Bumi

FTSE 100 ticks up; Rothschild quits Bumi

Britain’s markets rose following overnight gains in Asia and the US as risk appetite increased amid stronger US economic data.

The FTSE 100 opened up 0.43%, or 25 points, to 5,830 and the Mid-250 index took on 0.39%, or 46 points, to 11,901.

The Financial Times reports that Spain is preparing a bailout request. However, the country has not yet formally applied for a rescue package, which would see the European Central Bank (ECB) buy its sovereign bonds, and is waiting for a solution to minimise the impact of a request on other eurozone countries teetering on the brink of a bailout request, such as Italy.

The yield on benchmark 10-year Spanish bonds narrowed seven basis points to 5.795% in Tuesday morning trade.

Other stock markets in Europe also made gains: Germany’s DAX index added 0.61% to 7,305, France's CAC 40 index gained 0.56% to 3,440, and the FTSEurofirst 300 index of top European shares rose 0.45% to 1,103.

Oil prices rose as the European Union placed sanctions on 30 Iranian oil and gas companies in an effort to curb the country’s ability to fund its nuclear development programme.

Brent crude for delivery next month added 0.14% to $115.96 per barrel and West Texas Intermediate crude for delivery next month increased 0.1% to $91.94.

Bumi falls on Rothschild exit

Coal miner Bumi (BUMI.L) shed 8.5p, or 3.5%, to 232p as co-founder Nat Rothschild quit the board of the company after a row with the Bakrie family, who control the business.

Rothschild accused the company's chairman, Samrin Tan, of being ‘complicit’ in oppressing minority shareholders as the Bakrie family made moves to exit the company.

Carpetright (CATUV.L) shed 4.5p, or 0.64%, to 695p despite posting a small increase in second-quarter sales as a result of revamped stores and better laminates sales.

Car and plane parts maker GKN (GKN.L) sank to the bottom of the FTSE 100, down 3.2p, or 1.5%, to 209p as a weak automotive market in Europe held back third-quarter profits.

Lloyds (LLOY.L) added 0.65p, or 1.6%, to 41p on news it will be able to bolster its finances in a deal with Scottish Widows. The bank will borrow more than £1 billion of liquid assets from Scottish Widows' insurance arm, using lower quality securities to boost its cash holdings.

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