Spanish bailout boost for London
The London market has made cautious gains after Spain secured its first bailout payment for its banks and was given extra breathing space to meet its fiscal targets.The FTSE 100 Index closed 36.7 points higher at 5664.1 as the country's government was told it can now bring its fiscal deficit down to 2.8% by 2014, rather than the original target of 3% by next year.
A 30 billion euro (£23 billion) payment was agreed for the Spanish government to support the country's struggling banks, which could climb to as high as 100 billion euros (£80 billion) in the months ahead.
In the City, Marks & Spencer was in focus after the retail giant unveiled a major shake-up of its board in a bid to ease concerns over its recent lacklustre trading.
The pound continued to climb against the battered euro to 1.26 but slipped against the US dollar to 1.54.
The FTSE 100 miners benefited from the improved sentiment in Europe with Vedanta Resources climbing 19p to 916.5p, Kazakhmys adding 6.5p to 723p and Xstrata rising 10.9p to 826.5p.
M&S advanced more than 2% after chief executive Marc Bolland sprung a surprise in the City by appointing former Debenhams and Jaeger chief executive Belinda Earl as style director and announcing the departure of clothing head Kate Bostock.
The changes offset a 6.8% decline in clothing and general merchandise sales in the 13 weeks to June 30 - the worst result since December 2008 - and helped shares rise 6.8p to 327.8p.
In contrast to M&S's trading difficulties, online retailer ASOS saw shares jump more than 13% - up 211p to 1855p - after reporting a better-than-expected 8% rise in UK quarterly sales.
ASOS said the performance was "particularly encouraging" given the current trading climate, while its international business grew sales by 49% to £89 million, helped by a strong performance in the United States. Overseas business now represents 65% of its trading, compared with 57% last year.
The FTSE 100 miners benefited from the improved sentiment in Europe with Vedanta Resources climbing 19p to 916.5p, Kazakhmys adding 6.5p to 723p and Xstrata rising 10.9p to 826.5p.
M&S advanced more than 2% after chief executive Marc Bolland sprung a surprise in the City by appointing former Debenhams and Jaeger chief executive Belinda Earl as style director and announcing the departure of clothing head Kate Bostock.
The changes offset a 6.8% decline in clothing and general merchandise sales in the 13 weeks to June 30 - the worst result since December 2008 - and helped shares rise 6.8p to 327.8p.
In contrast to M&S's trading difficulties, online retailer ASOS saw shares jump more than 13% - up 211p to 1855p - after reporting a better-than-expected 8% rise in UK quarterly sales.
ASOS said the performance was "particularly encouraging" given the current trading climate, while its international business grew sales by 49% to £89 million, helped by a strong performance in the United States. Overseas business now represents 65% of its trading, compared with 57% last year.
© 2013 Press Association