The FTSE 100 set an intraday high for 2009 on Monday as traders continued to bet that the prospects for a sustained global economic rebound were improving.
Elsewhere the world’s central bankers were in no hurry to start raising interest rates as they headed home on Sunday from the US Federal Reserve’s annual retreat in Jackson Hole, Wyoming.
Source: www.ft.com
An unexpected rebound in French and German growth helped push the eurozone to the brink of economic recovery in the second quarter, delivering a further signal that the worst of the global crisis may be coming to an end in Europe.
Gross domestic product in the 16-nation currency bloc fell 0.1 per cent in April, May and June, the European statistics office said on Thursday, cheering economists who had expected a decline of 0.5 per cent after a drop of 2.5 per cent in the first quarter of the year.
Source: FT.com
The UK housing market showed further signs of stabilising during June with a 23 per cent jump in the number of mortgages taken out by people buying a home, figures revealed today.
Around 45,000 mortgages were advanced for house purchase during the month, the fifth consecutive monthly increase and the highest level for a year, the Council of Mortgage Lenders said.
There was also a steep rise in the number of first-time buyers getting on to the property ladder, with 17,200 mortgages taken out by people buying their first home, 26 per cent more than during May.
The RICS survey showed a continuing rise in interest from potential buyers, with new inquiries increasing for the ninth month in a row during July.
The Bank of England’s rate-setters have decided to pump another £50bn of new money into the economy in their programme of quantitative easing.
It will take their total spending to £175bn, unexpectedly going over the £150bn set aside by the chancellor.
In a statement, they said that the UK recession “appears to have been deeper than previously thought”.
The rate-setters also decided to keep interest rates unchanged at their historic low of 0.5% for a sixth month.
Also on Thursday, the European Central Bank decided to keep its interest rates unchanged at 1%.