Reuters: Hot Stocks: British shares up from 5-1/2 month low, helped by Chinese central bank

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

British shares up from 5-1/2 month low, helped by Chinese central bank Jun 25th 2013, 08:00 Tweet Share this Email Print Tue Jun 25, 2013 4:00am EDT * FTSE 100 up 0.6 pct * Gains push 7-day strength indicator out of oversold territory * Rexam top faller after profit warning By Toni Vorobyova LONDON, June 25 (Reuters) - Britain's FTSE 100 rose from 5-1/2 month lows on Tuesday, with investors seeing value in some stocks after the recent rout and with sentiment lifted by efforts by China to reassure markets over money supply. Following a squeeze in Chinese money markets and a slump in stocks, its central bank said it will guide market rates to reasonable levels, and that recent liquidity issues were due to seasonal factors. The comments offered some reassurance to global equity markets, which also took heart from two top U.S. Federal Reserve officials late on Monday downplaying the likelihood of an imminent end to monetary stimulus. "Everything has opened on a fairly positive note this morning ... The market at the moment is very reactive to all the issues... be it the Fed or China," said Neil Marsh, strategist at Newedge. "...Hopefully, over the next week or two it will all calm down and markets will go back to steadily moving higher." The FTSE 100 was up 36.40 points, or 0.6 percent, at 6,065.50 points by 0747 GMT, recovering some poise after sinking some 12 percent over the past month on concerns about an end to the era of easy global central bank stimulus. The rebound helped the UK benchmark move just out of oversold territory on the 7-day relative strength indicator, though technical analysts said it was too soon to turn positive. "The fact that the 200-day moving average has now been breached for the first time since November demonstrates the extent to which the bears are having it all their own way at the moment and it is hard to escape the impression that they will be aggressively selling into any rally that follows," Charles McNamara, analyst at Charles Stanley, said in a note. "In other words, although a bounce now looks likely the chart is still pointing towards a retreat below 6,000 in the medium term." U.S. durable goods, new homes sales data and a number of regional sentiment surveys could offer more clues on whether the world's biggest economy is really strong enough to warrant a scaling back of equity-friendly stimulus from the Fed. The United States - which accounts for around a quarter of FTSE 100 revenues - has become an increasingly key area for earnings growth at a time when other parts of the world suffer. Weak volumes growth in Europe and South America hurt performance at Rexam, with the beverage can maker down 4.1 percent after warning that first half operating profits would be lower than last year. (Editing by John Stonestreet) Tweet this Link this Share this Digg this Email Reprints Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions