POSITIVE sessions in the US and Asia saw the FTSE 100 Index open in positive territory yesterday.
It was announced that the UK Consumer Price Index fell 2.2% in September, in line with expectations. This is the lowest level since 2009 and is good news for real income and spending.
Reports that Germany may be easing its hard line on Spain, and therefore Spain may avoid going down the stringent European Stability Mechanism route and may be extended a line of credit by Europe as an alternative, was also positively received.
Strong earnings from the US further buoyed investor optimism and the FTSE 100 Index closed up 64.9 points at 5870.5.
Large cap mining company Rio Tinto announced a production update that was in line with expectations. Iron ore production was up 6% year on year and up 8% quarter on quarter, led mainly by record quarterly production at its Pilbara mine in Australia. The company is on track to increase capacity at Pilbara by 53% by 2015. Shares closed 2.9% higher at 3061p.
In the North Index, Newcastle housebuilder Bellway issued its preliminary results for the year to July 2012.
The group increased the number of completions by 6.2% to 5,226 homes, compared with the previous year's 4,922 completions, taking revenues to over £1bn.
A strong performance in the South of England, and London in particular, and a higher proportion of private completions has helped push up the average selling price by 6% and operating margins to over 11%.
Margins in the second half increased to 12.5%, at the upper end of its peer group, and pre-tax profits came in above expectations at £105.3m as a result. Investors reacted positively to the news and pushed share price 3.2% higher to 980p.
