UK Stocks have jumped up as the benchmark gauge FTSE 100 has been able to extend to its highest level in the last 3 weeks. A report recently came out showing that UK has been able to avoid a triple dip recession. The FTSE has been able to add around 10.83 points and it is currently at 6,442.59. On today, it lost around 0.3% at the beginning, but, later, pared the losses and went ahead by 0.5%. On yesterday, the gauge was able to complete its biggest two day rally since 3rd January. Various companies listed under the stock gauge published their reported sales figures and most of these were better than estimates. Apart from that, the commodity producers showed significant improvement as well. The broader FTSE All Share Index went ahead by 0.3% on today, whereas, the benchmark gauge of Ireland, ISEQ Index declined by 0.1%.
According to the Global Market Strategist of JPMorgan Asset Management, Tom Elliott, the investors are still not sure on the exact reason behind the slow growth in UK. It may be austerity or it may be because of the weak growth in the Euro zone. Elliott added that recently Unilever reported very weak growth mainly because of European debt crisis issue and hence, it can be concluded that there is certainly an element there.
In the 1st quarter of 2013, the Gross Domestic Product of UK increased by 0.3%, as far as report coming out of the Office for National Statistics is concerned. This is better than the estimated 0.1% increase by the economists. The economy was able to avoid the third recession since 2008 as it rebounded from a contraction of 0.3% in the last 3 months of 2012. Incidentally, a recession is defined by two successive quarters of shrinking output.
Among companies, Vodafone Group Plc. went ahead to 11-year high figure after report came out stating that Verizon Communications is going to offer a deal worth $100 billion to take complete control of Verizon Wireless. Vodafone is the 2nd biggest listed company on the FTSE 100 and it went ahead by 1.7%; each share being priced at 196.4 Pence, marking the best price since January, 2002.
British American Tobacco went ahead by 1.2% and each share is now priced at 3,591 Pence. The 1st quarter sales excluding currency shifts increased by 5% for the company.