Published On: Tue, May 28th, 2013

FTSE 100 leads European indices as the region advances

European stocks advanced for a second consecutive session today on the back of clarification of the European Central Bank’s position on its current monetary easing policy from officials. The comments lead to indices across the region approaching record highs.

The reaffirmation could not have come at a better time as sharp declines were witnessed late last week after uncertainty was raised by Ben Bernanke in the United States. The concern was emphasised with investor sentiment in Japan, as the regions markets failed to decide whether their QE programme was actually a positive for them when interest rates were taken into consideration.

The FTSEurofirst 300 made solid gains of 1.3 percent, advancing to 1246.44, adding to yesterday’s impressive showing during light trading. The DAX added 97.57, or 1.16 percent, continuing the positive start to trading in mainland Europe this week. The regions best performing blue chip index was the FTSE 100 however, adding 1.62 percent at its first opportunity to react to news released over the weekend and on Monday.

Aggreko PLC lead the London based index with an advance of 81.00p, or 4.68 percent, as the temporary power provider announced that it had opened a new mobile service center in Saint Johns, New Brunswick. EasyJet added to their impressive recent gains with an advance of 50p per share, or 4 percent.

International Consolidated Airlines Group SA also advanced by 10.80p, or 3.96 percent, to 8,304.195, underlining the gains made in the travel and tourism sector as a whole. WPP PLC advanced by 44p per share, or 3.84 percent, while Melrose Industries PLC added 9.5p, or 3.72 percent, to complete the FTSE 100’s top 5 performers.

Only five constituents of the london based index declined during the session, four of which were miners. With precious metals declining in value at an almost alarming rate of late, miners stocks have tumbled along side them. Eurasian Natural Resources Corp PLC declined by 2.67 percent, Evraz PLC by 1.64 percent, Anglo American PLC by 1.03 percent and Randgold Resources Ltd by 0.68 percent.

Severn Trent PLC was the only declining stock outside of the mining sector as their on-going takeover speculation continues. Shareholders are currently holding out for £23.00 per share, however the consortium they are negotiating with are only offering £21.00, which values the company at around £5bn.

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About the Author

- Gregory previously worked for a leading financial news publication and is now assistant news editor of