The UK’s premier index edged up tentatively today as Japan joined the economy stimulus trend.
The news that Japan is to join the US and Europe in trying to ignite its economy with bond buys did not exactly pump life into the FTSE 100.
However, it did stop a third day of potential losses after the initial hype surrounding the US’s money printing measures – which saw markets surge last Thursday – died down at the start of the week.
The Blue Chip index stood at 5,873.7, 5.5 points higher than yesterday’s closing mark.
Commodity stocks led the way on hopes that the central bank stimulus plans across the globe will lift demand for oil and metals.
United Utilities (LON:UU.) was the star performer, adding 2.6% to stand at 726 pence, on rumours of a bid from the Middle East for the water company.
Kazakhmys (LON:KAZ) also rose 2.4% to 760 pence, while Weir Group (LON:WEIR) was up 1.9% to 1,807.95 pence.
Britain’s biggest insurer Aviva (LON:AV.) was the main casualty on the Footsie, shedding 3.4% to 333.3 pence to add to yesterday’s losses.
Yesterday, brokers Deutsche Bank and Bank of America Merrill Lynch put downgrades out on the insurance firm on concerns about its growth and its plans to get rid of unwanted businesses.
Barclays (LON:BARC) also dropped 1% to 223.2 pence, as did emergency power company Aggreko (LON:AGK, down 1.3% to 2,361 pence) and computer chip maker ARM Holdings (LON:ARM, down 0.9% to 583.5 pence).
Outside the top stocks, ASOS (LON:ASOS) leapt 5.8% to 2,160 pence after excellent results, showing strong growth overseas.
Platinum miner Lonmin (LON:LMI) also rose 2.5% to 666.4 pence after it announced it would be resuming operations tomorrow following the strikes in South Africa, which saw 45 people killed by police when violence erupted.