London’s blue chip stocks were higher today as stability in the Eurozone sent markets across Europe rising.
This morning, Greece used up the majority of its €7 billion bridging loan to fund its €3.5 billion repayment (plus interest) to the ECB alongside finally repaying the €2.05 billion it owed the IMF.
In Europe, the Paris-based Cac40 climbed 16 points to 5,140 while the German Dax registered a 70 point gain to 11,743.
The renewed optimism was one of the factors that saw gold hit new five-year lows this morning after 5 tonnes was sold through the Shanghai gold exchange in the first half an hour of trading.
The sale represented 20% of a normal day’s volume, sending gold as low as US$1,088.
Shortly after, the price rebounded slightly to sit at US$1,112 by lunch.
Gains in the UK were slightly more muted as a result, with the index held back by its oil and mining stocks, with Brent crude and copper joining gold in its slide.
The FTSE 100 was just 14 points to the good, at around 6,789, with Fresnillo (LON:FRES) and Randgold Resources (LON:RRS) keeping it in check.
Shares eased 4.2% to 630.5p and 4.5% to 3822p respectively.
Meanwhile, Sports Direct (LON:SPD) led the risers, gaining 3.2% to 771p after a bullish note from Exane BNP Paribas.
The broker said: “The business remains dominant and well positioned,” as it retained its ‘outperform’ rating while bumping its target price to 860p from 800p.
Elsewhere, Standard Chartered (LON:STAN) announced a management reshuffle which will see a new 13-strong management team report directly to chief executive Bill Winters. Shares rose 9.5p to 1,026p.
Away from the FTSE 100, investors in computer aided design group Aveva (LON:AVV) celebrated a bumper pay-out as it agreed to merge with French rival Schneider Electric’s software arm.
In a complex deal worth £1.3bn, Aveva shareholders will receive at least £8.55 per share as a special dividend payment. Shares rocketed 27% to 2,2p.
To small caps – and Rambler Metals and Mining (LON:RMM) completed a pre-feasibility assessment at its Ming copper-gold mine in Canada. Shares jumped 17.95% to 11p on the news.
Also higher was Strategic Minerals (LON:SML) after chief executive John Peters bought 3mln shares at 0.6p per share taking his stake to just under 1%.
“My purchase, at significantly above market, reflects my continued confidence in the company” he said. Shares climbed 15.2% to 0.43p.
Conversely, Peer TV (LON:PTV) issued 16.7mln shares at a price of 0.0999 pence to YA Global SPV Ltd under a convertible loan note facility agreed in February.
Additionally, the company also issued a total of 122.8mln shares at 0.1173 pence to pay various debts. Shares dropped 11.2% to 0.12p.
Meanwhile, Chinese home products company Jiasen (LON:JSI) said chief financial officer Kian Tan has resigned for "personal family reasons". Shares were down 18.4% to 5.1p.