London follows Tokyo higher

The FTSE 100 is up 0.4% this morning, as the Japanese market bounces back from yesterday’s decline.

Overnight, the Nikkei 225 finished up nearly 2% at 12,686 after investment bank Nomura revealed a bullish note for the Japanese index; they believe the Nikkei 225 will reach 18,000 by the end of the year. This comment encouraged traders to buy back into the market, and the positive sentiment overflowed into European markets this morning.

In London, the mining sector has made the most gains; the industry is up 1.9% on the back of firmer commodity prices. The mega mining company Glencore Xstrata is up 2.7% after it announced a new credit facility of $17.34 billion to finance corporate operations. Expanding their credit line highlights how confident the company is in its ability to make profits.

Royal Bank of Scotland is in the red for a second day in a row, after Deutsche Bank lowered its rating to sell following yesterday’s announcement that Stephen Hester will step down as CEO. The share price is now off 0.5%.

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