FTSE 100 Watch: Signs of Economic Recovery Lift Footsie

on Sep 5, 2013
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iNVEZZ.com Thursday September 5th: The Footsie spent most of the morning in positive territory as recent data pointed towards a global economic recovery and the Bank of England made no changes to its monetary policy. At 12.35 BST the blue-chip index was 24.42 points or 0.38 percent higher at 6,499.16.

Earlier this week a survey showed that Britain’s services sector last month expanded at the fastest rate for more than six years, while construction activity posted the biggest increase in almost six years. Furthermore, last month global manufacturing activity grew at the fastest pace in more than two years.
However, concerns over a possible U.S.-led military strike against Syria continued to cap further stock market gains.

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“The broad flow of economic data has been positive in recent days. The Syrian issue is in the background, but a military strike is not imminent and that’s allowing investors to concentrate on economic fundamentals,” said Keith Bowman, equity analyst at Hargreaves Lansdown, as quoted by Reuters.

Meanwhile, Bank of England’s Monetary Policy Committee met for the second time after Mark Carney became governor. As expected, the committee made no changes to the benchmark interest rate and provided no guidance on the timing of a possible rate increase.
**Marks & Spencer** was one of the top gainers with the shares surging 2.99 percent to 493.00p after the retailer was upgraded by HSBC to “overweight” from “neutral”. The bank said that the rating change was “premised on the introduction of new and better general merchandise collections from Autumn/Winter 2013, especially womenswear and the highest operational gearing/sensitivity to an improvement in top line growth amongst the large cap names.” HSBC also raised its price target on M&S’s shares to 550p from

490p.
Other well-performing stocks from the retail sector included **Burberry** rising 2.02 percent to 1,569.00p and **Kingfisher** gaining 1.28 percent to 399.55p.
!m[Marks & Spencer Leads Retailers Higher](/uploads/story/5302/thumbs/pic1_inline.jpg)
**InterContinental Hotels** climbed 2.02 percent to 1,873.00p after UBS moved its rating on the stock to “buy” from “neutral” and raised its price target from to 2,200.00p from 2,050.00p. “An increase in the [hotel] pipeline should help InterContinental drive growth,” UBS analysts said in a note to investors. “One of our main concerns was the decline in the pipeline system size, which with an increase of 6% in the first half, reversed the trend we had seen since the peak of 2008.”
**The FTSE 100 was 39.32 points or 0.61 percent higher at 6,514.06 as of 05.09.2013, 13.40 BST.**

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