FTSE CLOSE: Market booms as US tapering delay looks probable; Reckitt soars 5.2%

The households products company gained 5.2 per cent as it also cheered investors with a better-than-expected set of third quarter trading figures.

Elsewhere in the top flight, Royal Bank of Scotland recovered from the 5 per cent fall seen in the previous session to stand 8.9p higher at 362p, or 2.5 per cent.

Following the figures the UK blue-chip index turned 0.5 per cent higher at 6,688 and is now trading 28 points higher, or 0.4 per cent, at 6682.

Shares in the Durex-to-Dettol consumer goods giant climbed by nearly 5 per cent or 225.5p to 4725.5p after it reported revenue growth of 5 per cent to reach 2.55billion for the third quarter.

‘Expectations are for an increase to 180,000 from 169,000, while the unemployment rate is expected to remain at 7.3 per cent.’ The FTSE 100 index opened 0.1 per cent up at 6,662.01 and is now trading 7.75 points higher, or 0.12 per cent, at 6,661.95, helped by strong updates from Reckitt Benckiser and miner BHP Billiton.

Mike van Dulken, head of research at Accendo Markets, said: ‘We’re sceptical as to the usefulness of September US jobs data, so while markets get excited about their favourite monthly data print, we expect the outcome to keep markets optimistic thanks to an accommodative Fed.

Shares in Reckitt and BHP were the top gainers after the former reported a 5 per cent increase in like-for-like quarterly revenue and the latter upgraded its iron ore production target.

‘A good start to production for FY2014 (fiscal year 2014) with an increase in iron ore production guidance…that should add around $0.5billion in sales and close to 2 per cent in EPS (earnings per share) to FY14e,’ the bank said in a note.

The UK blue chip index closed 31.62 points higher, or 0.4 per cent, at 6,651.86 points yesterday



Categories: Business

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