London close: Stocks end higher after Australian rate cut

7th May 2013 16:31

Market MoverstechMARK 2,417.98 +0.11%FTSE 100 6,557.30 +0.55%FTSE 250 14,101.42 -0.03%UK stocks charged higher on Tuesday, buoyed by the unexpected cut to Australia's policy cash rate, which prompted a strong start in the US. Stocks also rose on the back of Japanese markets rising to their highest level in almost five years, boosted by a weaker yen and the Australian central bank decision. The Reserve Bank of Australia made the surprise decision to reduce its interest rates to a record low of 2.75% - the move had been on the cards, but has come much sooner than anticipated.Closer to home, UK car retail sales were also providing a lift after they jumped to their highest level since April 2008, the Society of Motor Manufacturers and Traders (SMMT) revealed this morning. The organisation also predicted that 2013 sales will come in above previous expectations. The SMMT said new car registrations rose to 163,357 in April, a rise of 14.8% compared to a year ago, although this was in part due to a higher number of sale days this year. The figure was driven in part by private registrations, which were up almost a third on April last year. In other UK economic news, shop price inflation fell to its lowest level in three and a half years in April, the British Retail Consortium (BRC) has reported. The figure declined to 0.4% from 1.4% in March, with food inflation dropping to 2.9% from 3.5% month-on-month and non-food falling to deflationary territory, down 1.0% in April after a 0.2% rise the previous month.Elsewhere, new research has shown that as many as one in three people will be forced to reduce the amount they put into savings over the coming months as a result of mounting pressure on personal finances. According to Lloyds TSB, around 30% of people in the UK expect to allot more of their earnings to spending rather than saving over the next 12 months. Company newsShares in natural resources giant ENRC moved higher after Russian billionaire Suleiman Kerimov bought a 2.86 per cent stake in the group. Kerimov's purchase, which is estimated to have cost in the region of $176m, takes his share in the company to 3.05%. HSBC was also on the rise after posting a 95% increase in pre-tax profits in the first quarter as the bank slashed costs and bad debts. Profit before tax for the three months to March 31st came to $8.4bn, up from the previous year's $4.3bn, as revenue rose by 14% to $18.4bn from $16.2bn. BT Group also got a boost after Citgroup raised its target price on the stock from 250p to 300p. Meanwhile, shares in secure outsourcing group G4S dipped after the group published its first quarter results revealing a 0.6% contraction in group operating margin when compared to one year earlier. The group said that this reflected four main reasons, including continued challenging economic and trading conditions in Continental Europe, ongoing pricing pressure in the UK and Ireland, the mix effect of new contracts starting in the UK and the impact of a £6.0m charge in the African region. Randgold Resources dropped after Investec reduced its target price on the stock from 6,882p to 6,181p. On the FTSE 250, Imagination Technologies Group was lower after Exane BNP cut its target price from 610p to 311p and downgraded the stock to neutral. Meanwhile, National Express rose after it reported it was trading in line with expectations in the first quarter after securing two major rail contracts and launching new services in the UK and Germany. Man Group got a boost after Bank of America upped its target price from 150p to 170p and reiterated a buy recommendation. Also providing a lift was JP Morgan, which raised its target price from 62p to 85p. FTSE 100 - RisersEvraz (EVR) 166.20p +6.81%Eurasian Natural Resources Corp. (ENRC) 310.40p +6.05%Barclays (BARC) 307.40p +3.82%TUI Travel (TT.) 335.00p +3.36%HSBC Holdings (HSBA) 735.00p +2.96%Standard Chartered (STAN) 1,700.00p +2.60%BT Group (BT.A) 281.90p +2.51%Old Mutual (OML) 213.20p +2.45%British Land Co (BLND) 612.50p +2.42%CRH (CRH) 1,435.00p +2.35%FTSE 100 - FallersG4S (GFS) 260.00p -14.89%Fresnillo (FRES) 1,175.00p -2.25%Weir Group (WEIR) 2,154.00p -2.22%Randgold Resources Ltd. (RRS) 5,005.00p -1.96%Petrofac Ltd. (PFC) 1,377.00p -1.92%Burberry Group (BRBY) 1,352.00p -1.89%Imperial Tobacco Group (IMT) 2,316.00p -1.78%Aggreko (AGK) 1,693.00p -1.74%Serco Group (SRP) 613.50p -1.60%Kingfisher (KGF) 324.60p -1.55%FTSE 250 - RisersOcado Group (OCDO) 187.50p +6.53%Hochschild Mining (HOC) 271.50p +5.97%Kenmare Resources (KMR) 29.30p +5.24%Bank of Georgia Holdings (BGEO) 1,764.00p +5.00%Man Group (EMG) 125.50p +4.58%Computacenter (CCC) 454.80p +4.36%Lonmin (LMI) 296.50p +3.56%RPS Group (RPS) 225.40p +3.49%Kazakhmys (KAZ) 385.00p +3.36%Fenner (FENR) 364.80p +3.31%FTSE 250 - FallersQinetiQ Group (QQ.) 181.60p -4.92%Imagination Technologies Group (IMG) 299.90p -4.76%Home Retail Group (HOME) 133.70p -4.43%Taylor Wimpey (TW.) 90.35p -3.52%Carillion (CLLN) 275.30p -3.23%F&C Asset Management (FCAM) 95.25p -3.05%Heritage Oil (HOIL) 140.00p -2.71%Go-Ahead Group (GOG) 1,489.00p -2.68%Cairn Energy (CNE) 281.50p -2.63%Cable & Wireless Communications (CWC) 41.97p -2.40%NR