FTSE at rise, Burberry heads the wave

Wednesday, 04 January 2012

The UK's FTSE 100 closed up 127.63 points, or 2.29pc, at 5,699.91, as positive manufacturing data from the EU and US buoyed investors. Burberry rallied nearly 5% while in Paris, LVMH and PPR climbed by 1% each.

The jump was the FTSE 100's biggest since November and leaves it at its highest close since October, after a modest 1.5pc rise in the whole of December.The FTSE 100 soared 127.63, or 2.3 percent, to 5,699.91 at the close in London. That was the largest jump in more than a month and pushed the gauge to the highest level since Oct. 28. The broader FTSE All-Share Index also increased 2.3 percent today, and Ireland’s ISEQ Index added 2 percent.

"Shares in London have made a strong start to the new year as manufacturing data surprises," said David Jones to Business Week, chief market strategist at IG Index in London

Following these data, stocks climbed as separate surveys showed manufacturing in China and India improved in December, while Australian output expanded for the first time in six months, published Bloomberg. Other reports showed production in American factories climbed to a six-month high last month and U.K. manufacturing shrank less than economists forecast.

Burberry, which generates more than 30 percent of its revenue in the Asia Pacific region, rallied 4.9 percent to 1,243 pence. China National Radio said the Chinese Ministry of Commerce may announce fresh stimulus measures to boost domestic spending as early as this week, citing Shen Danyang, a spokesman of the ministry. In the same vein, Marks & Spencer Group Plc gained 1.9 percent to 317 pence as Bank of America Corp. raised its recommendation for the retailer to "neutral" from "underperform."

Meanwhile in Paris, luxury-goods group LVMH Moet Hennessy Louis Vuitton advanced 1.24% on Monday and kept the positive track on Tuesday as it gained nearly a 1%, as well as its rival PPR. However, Spanish Inditex lost 0.53%.

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