FTSE closes up

FTSE 100

FTSE 100

The FTSE 100 Index in London is doing well in spite of uncertainty in Egypt.

Exciting developments in China and positive economic data has bolstered markets around the world alleviating fears over the civil unrest in Egypt.

The Footsie closed 1.6 per cent higher, up 94.9 points at 97.8 and the Dow Jones in New York saw an industrial average of over 100 points in early trade.

There is more good news across Europe as Germany’s Dax was up 1.5 per cent and France’s Cac-40 reaching 1.7 per cent higher.

Spirits rose when it was revealed that China’s central bank was now less likely to raise interest rates.

Also, reports showed that BP is bouncing back following a costly year in 2010. Their shares were up by 6.2 per cent at 491 pence which made a marked difference in the UK markets where the pound is up against the US dollar.

Investors are still concerned about the demonstrations and unstable government in Egypt but breaking manufacturing news coming out of Britain and the US has led them to optimistic about the future, while keeping one eye on the Middle Eastern country.

There have been some negative effects from the protests. Ratings agency Moody’s has declared that Egypt’s debt rating has been cut and their outlook has been changed from stable to negative.

The price of oil has soared to over $100 a barrel in London and travel companies have been hit as people avoid the country which seems to be on the edge of revolution. Shares in BA/Iberia fell 1.8 per cent, TUI Travel dropped by 2.6 per cent and Thomas Cook’s shares plummeted by as much as three per cent.

Should the markets be more concerned about the situation in the Middle East?

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