FTSE feels China effect

on 08/02/2013 08:58:13

Better-than-expected trade data in China calmed world markets today after a volatile week triggered by the resurfacing of eurozone fears.

The FTSE 100 Index was 38.1 points higher at 6266.6, having sunk more than 60 points yesterday in the wake of European Central Bank president Mario Draghi's warning of downside risks to the eurozone economy.

Mining stocks were the main factor in London's improved performance, with Anglo American up 34p to 1971p and Antofagasta ahead 30p to 1155p after further signs of a rebound in China's export growth.

The figures are good news for those countries dependent on helping to fuel China's economic boom, although experts pointed out that a slice of January's 25% jump in exports was due to the timing effect of the lunar new year holiday.

Vodafone was another stock on the risers board, up 3.15p to 189.4p, after Bank of America Merrill Lynch upped its rating on the mobile phone giant to buy following the company's trading update yesterday.

Defensive stocks were out of favour in the top flight, with Imperial Tobacco off 17.5p at 2329.5p and Severn Trent 4p lower at 1614p. The water company disclosed that it had sold its laboratories arm to ALS of Australia for an undisclosed price.