UK stocks have went ahead, posting the biggest 3-day rally since last January, after a report came out showing that the Chinese imports increased better than the forecast. Apart from that, the fact that the US equities surged to a record helped the UK shares as well. The benchmark gauge FTSE 100 Index increased by 74.16 points and is currently at 6387.37. Therefore, the 3-day advance has reached to 2.2% now. In 2013, the gauge has rallied by 8.3% after positive data came from all over the world and the budget deal in US. On today, the broader FTSE All Share Index increased by 1.2%. On the other hand, the benchmark gauge of Ireland, ISEQ Index increased by 1.8%. The total volume of shares exchanging hands in companies listed under the FTSE 100 was 9.3% below the average of the last 30 days.
According to the Market Analyst of CMC Markets Plc., Michael Hewson, Chinese imports have made investors believe that China has got success at boosting the domestic demand of the country. He added that the current volume is not pretty dynamic and this definitely doesn’t reflect an awful lot of conviction either. The current momentum is with bulls and if an investor decides to go against that, it will definitely prove to be a foolish action.
According to Customs Administration, Chinese imports increased by 14.1% in March and this is better than forecasts. The export growth slowed down to 10% from its value of a year earlier.
On the other hand, the benchmark gauge of US, Standard & Poor’s 500 Index jumped up to its highest intraday figure on today. Minutes from the last month’s Federal Reserve meeting showed that several officials are thinking that the Central Bank should start to taper the quantitative easing program at some later time in 2013.
Among companies, Vedanta Resources shares increased by 5.7% and each share costs 1179 Pence now. This is the best figure of Vedanta shares in last 30 days. Marking its biggest increase since February, IAG shares increased by 5.8% to 250.9 Pence.
For the first time in last 6 days, EasyJet shares increased by 6.7%; each share is currently priced at 1090 Pence. Citigroup raised its stock rating to buy from neutral as it believes that the earnings per share of it will increase by 30% in 2013.