FTSE 100 closes above 5,000 mark

| September 9, 2009 | 0 Comments
FTSE 100 closes above 5,000 mark

London’s FTSE 100 index closed up 57 points today at 5004.30 - the highest level since 3rd October 2008.

Shares across Europe have also performed well, with France’s Cac 40 index gaining 1.3% and Germany’s Dax index rising 1.7%.

In the US, the Dow Jones industrial average was up 63.94 points at 9,561.28 in late-morning trading.

Stocks have also received a boost due to rising commodity prices, as well as merger activity this week. US food giant, Kraft, approached British confectionery giant Cadbury with a £10.2 billion takeover offer, which Cadbury snubbed.

However, the news on Monday sent shares in Cadbury, the maker of Dairy Milk chocolate, surging by 36% to 778p.

The steady rise has given hope to investors that the recession is over and has boosted sentiment.

Positive economic news has also contributed to the rise of the FTSE after the Office for National Statistics (ONS) today reported that British exports rose at their fastest monthly pace in July.

Also today, the Nationwide reported a rise in consumer confidence, while a separate report from the Recruitment and Employment Confederation and KPMG revealed some positive news for the UK jobs market.

Meanwhile, yesterday the ONS revealed a rise in UK manufacturing output during July, boosted by a sharp improvement up in car production.

Factory output rose by 0.9% in July when compared with the previous month - treble the figure that analysts had forecast and the fastest rate in 18 months.

Also yesterday, the National Institute of Economic and Social Research said the British economy grew 0.2% in the three months to August and reinforced its opinion that the UK recession ended in May.

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