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The rally looked under threat yesterday, but more good news from China has engendered a strong bounce with miners leading the way. Chinese news always acts as an ideal way to liven up the market, reassuring investors that growth is not entirely missing from the global economy.
Figures from Rio Tinto were well received, even if the decision to go all-out on iron ore leaves the company dangerously exposed at a time when the price remains stuck in a long slump thanks to excessive supply levels.
Meggitt’s jump to the top of the leaderboard marks a significant turnaround and will have caught many on the hop, as the company becomes the latest UK firm to fall under the acquisitive eyes of a US firm.
Falling unemployment added more pressure to the Bank of England, but with earnings growth below expectations Mark Carney can still point out enough reasons why ‘not now, but eventually’ is still his mantra on UK interest rates.
After Janet Yellen’s carefully managed testimony yesterday, we will have to go through it all again today, but her views aren’t about to change in the space of 24 hours.
Intel’s results were enthusiastically received, and should help to cancel out the gloomy figures from Yahoo!, whose only ambition seems to be holding on to as much of Alibaba as possible. How the mighty have fallen.