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Volatile week ends on a high note

By Western Morning News  |  Posted: February 09, 2013

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The FTSE 100 Index was on the front foot once more yesterday as better-than- expected data from China and the US calmed investor nerves after a volatile week.

The FTSE 100 Index closed 35.5 points higher at 6263.9, having sunk more than 60 points on Thursday in the wake of European Central Bank president Mario Draghi's pessimistic outlook for the eurozone economy.

The top tier had plunged more than 100 points on Monday – the biggest points fall in a day since July last year – amid fears of a return to political turmoil in Italy and Spain.

But there was some encouragement from the beleaguered region yesterday after EU leaders finally agreed on a budget framework for the next seven years, which will see a real-terms cut in spending to 908 billion euros (£773bn).

There were further signs of a rebound in China's export growth and also some cheer from America as robust trade figures suggested fourth quarter gross domestic product may be revised higher.

The pound gained strength against most major currencies amid signs the Bank of England will refrain from extending its economy-boosting quantitative easing scheme. Sterling rose to 1.58 US dollars and 1.18 euros.

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