London equities ended the session stronger on Tuesday propelled by encouraging corporate figures and news of soaring investor sentiment in eurozone powerhouse Germany.
The FTSE 100 index of leading companies gained 0.96 percent to 6,379.07 points.
“The Standard & Poor?s 500 index has completed its longest streak of weekly gains since January 2011 after the US markets reopened after yesterday?s Washington celebrations. The latest boost to market sentiment came amid optimism over deal making and data showing rising investor confidence in Germany,” Max Cohen, Financial Sales Trader at Spreadex, said.
Investor sentiment in Germany surged unexpectedly to the highest level for three years in February, as the outlook for Europe’s top economy brightens, a new survey found.
The widely watched investor confidence index calculated by the ZEW economic institute soared to 48.2 points in February from 31.5 points in January. That was its highest level since April 2010.
“That ZEW number has absolutely smashed expectations, and the euro can be expected to rally hard as a result,” said analyst Fawad Razaqzada at trading group GFT Markets.
“This really was not expected by the market so after what has been a rather moribund start to the month we could see some real life coming into stocks.
“But there is some concern that the ECB is not going to let the euro appreciate significantly, so there is a chance that the gains could well be short-lived, at least as far as the single currency is concerned.”
In London, Vodafone saw the largest number of shares traded, with 182.12 million units changing hands, followed by Lloyds Banking Group (LBG) which saw 72.62 million switch owners.
TUI Travel was the biggest blue chip gainer, adding 4.14 percent — or 13.10 pence — to 329.70 as the holidays company drew confidence from the improved investor sentiment news from Germany.
It was followed by Rolls Royce which added 3.88 percent — or 39 pence — to 1043 on broker upgrade.
Vodafone was the worst performer, shedding 1.98 percent — or 3.30 pence — to 163.50 as the telecom giant dropped on negative broker comments.
InterContinental Hotels Group was next, descending 1.81 percent — or 36 pence — to 1953 despite annual profits jumping by almost a fifth, aided by strong expansion in China and the United States, and added it would press head with the sale of two key hotels.
The company, owning the InterContinental, Crowne Plaza and Holiday Inn chains, added that global revenue per available room (RevPAR) — a key industry measure — rose by 5.2 percent last year, led by 6.3-percent growth in the United States and 5.4-percent growth in Greater China.
“IHG’s proven strategy and resilient business model position us for further good performance in 2013, despite the challenging economic environment,” added chief executive Richard Solomons in the earnings release.
“The 16-percent increase in our dividend demonstrates the confidence we have in our ability to deliver sustained high quality growth.”
On the currency markets, the sterling eased to $1.5427 at 5:04 pm from $1.5465 at around the same time Monday and to 1.1523 euros from 1.1583 euros over the same period.
London FTSE ends stronger
