UK markets climb on financials and strong US opening

By MoneyhighStreet Staff. Published on August 5, 2008 This post currently has no comments.

Legal General
The FTSE 100 index enjoyed impressive gains today (August 5th) led by expectations of firm trading in the US and some positive news from a number of UK companies.

News that Standard Chartered''s profits climbed 32 per cent in the first half of the year got the London blue chip index off to a good start.

The positive feelings were reinforced when Legal & General revealed that its operating profit was up six per cent to £626 million this year from £589 million in the first half of 2007.

Keith Bowman from Hargreaves explained to Thomson Financial that the new pieces of data helped support the FTSE today.

He said: "Financials have received a boost after expected positive results from Standard Chartered, underlined first thing by robust figures from Legal & General.

"Yesterday''s significant decline in the oil price late on in the US session is probably the big factor underlying positive sentiment."

On the back of the news, the FTSE eventually closed up 134.30 at 5454.50.

The profits from Legal & General and Standard Chartered were enough to boost shares in the companies by 12 per cent and eight per cent respectively.

Elsewhere, the news that Redrow and Bovis Homes were to axe around 40 per cent of their staff helped their shares recover after weeks of losses.

The former climbed 18 per cent to 161 while the latter closed up 16 per cent at 418.