London Stock Exchange adds 10 percent on session

| December 14, 2009 | 0 Comments
London Stock Exchange adds 10 percent on session

European equities markets were higher Monday on the news that Dubai has received $10 billion in help from Abu Dhabi.

The FTSE 100 was up 1.02 percent to 5,315.34 in London, while the FTSE 250 added 0.41 percent to 9,037.77.

The London Stock Exchange (LSE: LSE) also benefited from the news from Dubai, adding 9.94 percent for the best performance on the session in London as fears eased that Dubai Borse, which holds a stake in the LSE, might have to sell its shares in the London exchange.

Most banks were higher, led by Standard Chartered (LSE: STAN), but Lloyds Banking Group (LSE: LLOY) dropped 1.89 percent on the completion of its rights issue, worth £13.5 billion.

Investment manager Ashmore Group (LSE: ASHM), which specializes in emerging markets, added 7.21 percent for the best performance on the 250.

Most miners were up, led by Lonmin (LSE: LMI), which gained 3.74 percent, but gold miner Petropavlovsk (LSE: POG), which operates in Russia, dropped 3.29 percent for the worst performance on the 250 and in London.

Hotels and restaurants operator Whitbread (LSE: WTB) added 3.76 percent after it said it believes its results for the 2009-2010 fiscal year will be a bit better than expected.

Beverage can manufacturer Rexam (LSE: REX) turned in the worst performance on the 100 as it fell 2.41 percent.

British Airways (LSE: BAY) dropped 0.2 percent after a strike vote by cabin crew.

Asia-Pacific markets were mixed on the session.

The Nikkei 225 was 0.02 percent lower to 10,105.68 in Tokyo, while the Topix index fell 0.39 percent to 885.08 but the Mothers market added 0.37 percent to 399.86.

Tokyo’s main indices were lower after the Bank of Japan’s quarterly Tankan survey met expectations in showing that business sentiment is up slightly but still more negative than positive.

Airlines saw gains on an agreement between Japan and the United States that could mean easier formation of alliances between the airlines of the two nations, with Japan Airlines (TYO: 9205) up 3.2 percent while All Nippon Airways (TYO: 9202) gained 1.2 percent.

Tokyo’s construction sector also saw gains after the news of the Dubai bailout from from Abu Dhabi to pay its debts.

Earlier, the construction sector was hurt by a report that Dubai and firms tied to it owed around $7.5 billion to Japanese non-financial groups, including construction companies.

In addition to Tokyo’s declines, the Straits Times Index was down 0.04 percent to 2,799.54 and India’s Sensex dropped 0.13 percent to 17,097.55.

Markets seeing gains included Taiwan’s Taiex, which was 0.31 percent higher to 7,819.13.

In Australia, the Sydney Ordinaries added 0.36 percent to 4,668.2, while the S&P/ASX200 was up 0.41 percent to 4,654.

The Kospi was 0.47 percent higher to 1,664.77 in South Korea, while the Hang Seng added 0.84 percent to 22,085.75 and the Shanghai Composite gained 1.71 percent to 3,302.9.

New York markets were higher in midday trade as the Dow Jones Industrial Average was up 0.35 percent to 10,507.85 while the Nasdaq Composite had added 0.81 percent to 2,208.12 and the S&P 500 was 0.68 percent higher to 1,113.88.

Also in midday trade in New York, crude oil prices were less than 10 cents lower than Friday’s close while metals prices were mixed.

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