London’s main market made cautious gains today after Spain secured its first bailout payment for its banks and was given extra breathing space to meet fiscal targets.
The FTSE 100 Index closed 36.7 points higher at 5,664.1 as the Spanish government was told it could bring its fiscal deficit down to 2.8% by 2014, rather than the original target of 3% by next year.
Miners benefited from the improved sentiment in Europe, with Vedanta Resources climbing 19p to 916.5p, Kazakhmys adding 6.5p to £7.23 and Xstrata rising 10.9p to 826.5p.
Marks and Spence advanced more than 2%, or 6.8p to 327.8p after changes to the senior management team overshadowed a 6.8% year-on-year decline in clothing and general merchandise sales in the 13 weeks to June 30.
But online retailer ASOS saw shares jump more than 13%, or £2.11 to £18.55 after a better-than-expected 8% rise in UK quarterly sales.
Next, which recently overtook M&S in terms of valuation on the London market, benefited from the ASOS update and rose 1%, or 21p to £31.91.
Burberry recovered from a difficult session on Monday to rise 29p to £12.84 as investors looked towards today’s trading update from the luxury fashion brand.
A shortened fallers board was topped by catering group Compass – down 13.5p to £6.56 – after third-quarter trading figures from France’s Sodexho disappointed markets.
It was joined on the way down by utilities Severn Trent and United, 4p and 2.5p lower at £16.95 and £6.79 respectively.
Alan MacPhee, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, highlighted Amec up 3.14% to £10.52, Wood Group advancing 1.67% to 729.25p and Standard Life 1.47% higher at 234.4p.
Xcite Energy slumped 4.59% to 67.375p, Parkmead Group moved 1.96% lower to 12.625p and BG Group weakened 0.57% to £13.00.