The UK stocks experienced gains on today, as the benchmark gauge FTSE 100 Index was able to rebound from the lowest level of the same in the last 2 and a half weeks. The shares of mining companies and banks rallied, helping the stock index to post gains. The FTSE 100 Index experienced a surge of 0.5% and the same is currently at 6,656.99. In May, the stock gauge has advanced by 3.5% so far. On yesterday, the stock gauge went down to the lowest level since 10th May as investors were concerned that the Federal Reserve will be scaling back the monetary stimulus. As far as the broader FTSE All Share Index is concerned, the same went ahead by 0.4%, whereas, the benchmark gauge of Ireland, ISEQ Index surged ahead by 0.2%. The overall volume of shares changing hands in the FTSE 100 Index was 12% less in comparison with the average of the last 30 days.
Espen Furnes, the Fund Manager of Storebrand Asset Management, stated that today was all about slight recovery after the weak development experienced on yesterday. In the last week, the market has seen volatility and this gives clear signals that the investors will be more cautious now. The investors are actually in an increased profit taking mode at this point of time.
In another report, the US Commerce Department announced that the biggest economy in the world grew at a revised annualized rate of 2.4% in the first quarter of 2013; this is less than the earlier reading of 2.5%. Incidentally, the projected growth by the economists was at 2.5%.
On the other hand, another report coming out from the National Association of Realtors showed that the pending house sales increased by 0.3% in US in April, thereby slowing down from where it was in March. The forecast was of a rise of sales of 1.5%.
A gauge for the mining shares in the FTSE 100 Index went ahead by 1.8%. The 2nd biggest raw materials company in the world, Rio Tinto, went ahead by 2.5% as each share is now priced at 2,933 Pence. On the other hand, a Glencore share increased by 1.7% and each share is priced at 333.4 Pence. As Morgan Stanley raised the rating to overweight, Wood Group surged ahead by 1.9% taking each share price to 849 Pence.