London close: Markets gain on QE speculation, Vedanta drops

15th Nov 2013 17:02

- Stocks extend gains on US stimulus hopes- US industrial production, NY manufacturing data misses forecasts- Vedanta drops sharply after interim reporttechMARK 2,649.29 0.00%FTSE 100 6,693.44 +0.41%FTSE 250 15,246.58 -0.07%Markets ended Friday's session with decent gains as investors continued to show optimism over a continuation of accommodative monetary policy from the Federal Reserve.Soon-to-be Fed Chairwoman Janet Yellen, who is due to take over from Ben Bernanke in January, said yesterday that the US economy is still performing "far short of [its] potential" and that the central bank must "do what we can to promote a strong economic recovery".The comments pushed the Dow Jones Industrial Average and S&P 500 to record highs last night, with both indices extending gains after the opening bell today. In London, the FTSE 100 finished today's session up 27.31 points at 6,693.44, a rise of 0.41%.Economic data from the States today showed that nationwide industrial production unexpectedly fell in October and manufacturing activity in the New York region contracted in November, which will likely throw more weight behind the argument for the Fed to maintain stimulus."Equity markets are holding onto hope that the US Federal Reserve's bond-buying scheme will remain unchanged for a few more months at least," said David Madden, Market Analyst at IG.The final revision of Eurozone inflation data for October was in focus this morning following last week's rate cut by the European Central Bank. As expected, consumer prices rose at an annual rate of 0.7%, in line with the initial estimate. Nevertheless, this was still a sharp unexpected drop from a rate of 1.1% the month before.Vedanta slumps as first-half sales dropMining group Vedanta Resources dropped sharply lower as investors reacted to a 17% drop in first-half revenue to $6.2bn on the back of falling commodity prices. Other in the sector including Fresnillo, Antofagasta and Anglo American were making gains, along with oil producers Shell and Petrofac.Shares in Centrica extended yesterday's declines which came after it warned market conditions remained challenging as it reduced its full-year forecasts. Credit Suisse cut its target price and reiterated its 'underperform' rating for the British Gas owner, saying there are "no major positives in sight".IAG was trading in the red despite lifting its profit guidance for 2015, helped by improving margins at British Airways and the ongoing recovery of Spanish airline Iberia. The firm is now targeting a €1.8bn operating profit in 2015, up 12.5% from its previous €1.6bn forecast. The stock was down nearly 3% the close, though this follows a near-100% surge since the start of the year. BAE, Rolls-Royce and Meggitt were dragged lower by negative readacross from defence peer Ultra Electronics, which warned that revenue for 2013 would be slightly below the previous year's due to "headwinds" in the US government-funded market in addition to other delays.FTSE 100 - RisersFresnillo (FRES) 941.50p +2.90%Mondi (MNDI) 1,019.00p +2.31%easyJet (EZJ) 1,265.00p +2.26%Royal Dutch Shell 'A' (RDSA) 2,095.00p +2.10%Royal Dutch Shell 'B' (RDSB) 2,185.50p +2.01%RSA Insurance Group (RSA) 104.50p +1.95%TUI Travel (TT.) 388.40p +1.92%Aberdeen Asset Management (ADN) 426.80p +1.81%ARM Holdings (ARM) 944.00p +1.56%InterContinental Hotels Group (IHG) 1,868.00p +1.52%FTSE 100 - FallersVedanta Resources (VED) 955.50p -6.69%International Consolidated Airlines Group SA (CDI) (IAG) 362.20p -2.90%CRH (CRH) 1,591.00p -1.61%Meggitt (MGGT) 505.00p -1.37%Sainsbury (J) (SBRY) 409.00p -1.35%Melrose Industries (MRO) 306.10p -1.32%Wolseley (WOS) 3,264.00p -1.24%BAE Systems (BA.) 449.00p -1.14%National Grid (NG.) 774.00p -0.96%G4S (GFS) 254.60p -0.93%FTSE 250 - RisersGenus (GNS) 1,297.00p +3.93%Pace (PIC) 305.00p +3.39%Telecity Group (TCY) 663.00p +3.27%Capital & Counties Properties (CAPC) 333.00p +2.75%Atkins (WS) (ATK) 1,313.00p +2.58%Edinburgh Dragon Trust (EFM) 267.70p +2.49%NMC Health (NMC) 372.00p +2.42%Oxford Instruments (OXIG) 1,495.00p +2.33%Fidelity China Special Situations (FCSS) 103.40p +2.17%Schroder Asia Pacific Fund (SDP) 247.10p +2.11%FTSE 250 - FallersXaar (XAR) 960.00p -5.42%Perform Group (PER) 435.70p -5.28%BTG (BTG) 433.50p -4.24%Ultra Electronics Holdings (ULE) 1,816.00p -4.22%Redrow (RDW) 264.00p -3.51%Rank Group (RNK) 141.00p -3.36%Rotork (ROR) 2,806.00p -3.04%Amlin (AML) 434.80p -2.88%Hochschild Mining (HOC) 142.00p -2.74%Essar Energy (ESSR) 105.40p -2.68%BC