Britain's FTSE scales 5-yr highs on strong U.S. data run
Reuters: London, Mar 12 2013, 03:03 IST
British equities rose to five-year highs on Monday, with a rally on Wall Street eclipsing concerns about political uncertainty in the euro zone and helping the FTSE 100 close above the key 6,500 points mark. The UK blue chip index closed up 20.05 points or 0.3 percent at 6,503.63, extending gains after the U.S. S&P 500 hit its strongest intraday levels since late 2007, continuing to draw comfort from Friday's forecast-beating U.S. jobs data. "We are just grinding higher on the back of stronger U.S. data that we keep seeing," said Adam Sea grave, equity trader at Saxon Bank. "For the right shares, people are still very happy to take stock on at these levels, but at some point we will probably have to pause for breath." Both the close and the intraday peak of 6,505.30 were the FTSE highest for more than five years, but technical charts showed scope for further gains. The index has powered through a string of resistance levels as it rallied some 15 percent in four months. "We remain positive with a target of 6,535 and an invalidation level at 6,412 points," analysts at chart specialists Day-By-Day said in a note. Underscoring the market's upward momentum, any dips - including the pause seen in the first half of Monday's trading session - have prompted strong buying interest.
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