Overseas news cheers FTSE

The FTSE 100 Index pushed ahead today as better-than-expected overseas news cheered investors.

Early trading in US markets gave London a boost after news that the American services sector shrank in January at a slower pace than the previous month and than analysts had expected. The FTSE closed up 64.1 points at 4228.6.

The upbeat financial data included figures from China suggesting a slump among the country’s manufacturers could be bottoming out.

The Dow Jones Industrial Average rose 0.5% after the US Institute for Supply Management said its service sector index rose to 42.9 last month from December’s figure.

But analysts said London trading was thin on the ground as traders held their collective breath in anticipation of tomorrow’s expected interest rate cut from the Bank of England.

Miners led the way after traders said Kazakh-based firms Eurasian Natural Resources (ENR) and Kazakhmys would benefit from a devaluation of Kazakhstan’s currency, the tenge.

Kazakhmys was the leading Footsie riser, up 36.25p to 280.25p or 15%, closely followed by ENR, up 47.5p to 377.75p.

Other mining stocks also featured on the risers’ board including Xstrata, up 92.5p to 719.5p and Antofagasta, gaining 53.75p to 477p.

Private equity giant 3i nudged ahead, up 11%, despite Nomura cutting its target price on the firm. Shares were up 24.75p at 236.75p.

Life and pensions firm Aviva was also in the leading pack after better than expected new business figures for last year. This pushed the stock 11% higher, or 37.25p to 370p.

Other risers included transport firm FirstGroup, which rose 23.5p to 278p as the sector was cheered by a Goldman Sachs upgrade for Stagecoach in the FTSE 250. Stagecoach added 11p to 130p, while Go-Ahead cheered 57p to 970p.

Drugs giant AstraZeneca led the top-flight fallers board after shares turned ex-dividend, meaning investors are not entitled to the latest payout. The group fell 145p to 2622p, or 5%.

Software group Sage – another ex-dividend stock – was another loser after a gloomy trading update disappointed investors and sent shares 5%, or 9.1p lower to 176.5p.

Elsewhere sportswear chain JD Sports Fashion added more than 13% or 29p to 242p, after the firm said it had maintained its strong Christmas sales momentum during January. The retailer is confident of full-year profits ahead of market hopes.

And chipmaker Wolfson Microelectronics gained more than 6% despite warning that “uncertain” market conditions meant it was unable to give guidance on revenue prospects this year.

Shares rose 6.5p to 77.75p as analysts said the full-year profits drop of 74% to 10.6 million US dollars (£7.4 million) was in line with expectations and they remained cautiously optimistic.

The biggest Footsie risers were Kazakhmys up 36.25p at 280.25p, Xstrata up 92.5p at 719.5p, Schroders up 78.5p at 666.5p and Antofagasta up 53.75p at 477p.

The biggest Footsie fallers were AstraZeneca down 145p at 2622p, Sage Group down 9.1p at 176.5p, Unilever off 61p at 1483p and British American Tobacco down 60p at 1854p.