Equity Bounce Follows Last Week’s Trounce

Monday, February 12: the FTSE 100(+1.19%) regained some of the ground lost in the sell-off last week, as it was lifted by good news for oil major BP and rising commodity prices for miners.

The story was much the same across Europe, with major indices clawing back a minimum of 1.00% in France, Germany and Switzerland, as early signs in the US were also indicative of a green-tinged trading session(S&P 500: +1.25% at London close). However, overnight Asian trade bucked the trend, with Japanese equities continuing to sell off(Nikkei 225: -2.32%), while the Hang Seng Index closed narrowly in the red(-0.16%).

BP(+2.15%) moved higher on broker upgrades after it stated that its Atoll Phase One project had been delivered 33% below the initial cost forecast and commenced production seven months ahead of schedule. Metal prices recovered after Wall Street saw a positive close on Friday, which helped to lift Anglo American(+2.68%),BHP Billiton(+2.77%)and Rio Tinto(+2.56%) on the primary index.

The British government announced that a further 4,400 jobs were to be saved from collapsed construction firm Carillion Plc by transferring contracts to new providers, as The Official Receiver deals with Britain’s largest bankruptcy in a decade. The plan is to transfer prison facilities management and defence bases catering and cleaning contracts to new providers. As of the current moment, 6,668 jobs have been saved, while 989 have been made redundant.

Across Europe, indices were higher at the close with the FTSE 100 +1.19%, the DAX 30 +1.45% and the CAC 40 +1.20%.

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