Shares in London rose strongly this morning on hopes that the Federal Reserve will offer a hand out to the US economy in the shape of a rate cut on Wednesday evening. US equities rallied on Friday on the back of such hopes, inspiring a similar drive on the Footsie today. At 1000, the FTSE 100 was up 96 points to 4,093, as a US rate move increases the chance of a follow up move by the Bank of England, perhaps as early as this week.
Shares in Paris and Frankfurt are also trading higher, with the CAC up 2.8pc and the DAX ahead by 3.6pc. Airports operator BAA surged 17.50p to 572.50 after posting interim earnings at the top end of the forecast range and saying that while conditions were challenging, it was optimistic for the medium term.
Mobile operator Vodafone was among the best performers, up 5.75p to 105, while mmO2 and BT Group gained 2.25p to 48.50 and 6.25p to 187.25 respectively, ahead of their results this week. Asbestos-hit insurer Royal & Sun Alliance rebounded by 6.50p to 110.50 on reports that it may scrap a planned rights issue, while Aviva and Prudential also gained. In the financial sector, Royal Bank, HSBC, Barclays and Lloyds all added to the upside. //www.fxcentre.com