Press Association
Sunday 12th February 2012
The FTSE 100 Index finished a sluggish week on a bright note on Friday after better-than-expected US retail figures eased concerns over the world's biggest economy.
The London market edged 8.4 points higher to 5625.7 after the data, which showed retail sales rose by 0.3% month-on-month in February despite heavy snow. The figures confounded fears of a 0.2% decline and gave a minor lift to traders after a largely stagnant week for the blue chip index.
After the boost given by US jobs figures a week earlier, the Footsie has added just 25 points with corporate and economic data thin on the ground, although the leading share index has held firm above the 5600 level and added to the 18-month high set last Friday.
The pound gained ground against the dollar despite the retail figures, trading above 1.52 against the greenback at one point. Sterling was steady at 1.10 against the euro.
Blue-chip banks meanwhile made strong gains on Friday as the sector followed the lead of US counterparts on Thursday night on hopes America will water down its banking crackdown.
Talks broke down in Thursday in America over government plans for tighter bank regulation, prompting suggestions they will end up being less onerous.
Part-nationalised Royal Bank of Scotland and Lloyds Banking Group led the sector's gains, as they were also reported to be among those lined up to handle a bond issue to raise several hundred million euros for one of the world's largest commodities traders. RBS rose 2p to 42.6p, while Lloyds was 1.9p dearer at 58.5p. Barclays followed with a gain of 8.1p to 351.85p.
Among other London stocks, British Airways was 2% higher or 5.1p up at 235.6p despite confirmation that cabin crew strikes will take place later this month.
The leading top flight riser was BSkyB, which gained 5% or 28.5p to 598p on vague rumours that Rupert Murdoch could take the satellite broadcaster private.
Retailer Marks & Spencer was also on the up for a second successive session - gaining 4.4p to 358.1p - after John Lewis followed its strong full-year results by posting another healthy weekly sales update.
