Markets Start the Month of February with a Bang

FTSE 100 rallies by nearly 2%, led by Schroders and Icap

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Alanna Petroff | 01-02-12 | E-mail Article

British stocks rallied on Wednesday after a report showed China’s manufacturing sector unexpectedly expanded last month. China is generally seen as one of the engines driving global economic growth, so this upbeat economic data helped boost investor sentiment and pushed markets higher.

Britain’s main blue-chip index, the FTSE 100 rallied by nearly 2%, or 109 points, closing the session at 5,791. The FTSE 250 Index surged ahead by 2.3%, or 252 points, to finish the day at 11,021.

Financial companies performed particularly well: asset manager Schroders (SDR) and interdealer broker Icap (IAP) were the biggest gainers, rallying by 8.7% and 7.5%, respectively.

Shares in the microchip designer ARM Holdings (ARM) dipped by 2.8% during the trading session. The shares rallied during the previous trading session after the company announced better-than-expected earnings results, but clearly investors are rethinking yesterday’s optimistic rally.

For the latest Morningstar analysis of ARM’s prospects, Premium subscribes can click here for an updated research report. Not a Premium member? Get these reports immediately when you try Morningstar Premium free for 14 days.

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Alanna Petroff is a financial journalist at Morningstar.co.uk. Morningstar welcomes your feedback, as do other Morningstar.co.uk readers. Please share your thoughts in the Comments box below.

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Markets Start the Month of February with a Bang

FTSE 100 rallies by nearly 2%, led by Schroders and Icap