Markets boosted by global economic stimulus hopes

UK investors maintained a global rally in stock markets as the prospect of central banks pouring more cash into the system looked more likely. The FTSE 100 was up 0.68%, a rise of 38 points to 5674, adding on yesterday's five month closing high of 5,636 after rising 1.4%.

Japan's decision to cut interest rates and inject cash into its economy sent shares up in US and Asian markets yesterday and last night. 

UK investors heard about Japan's action first but waited for its significance to be confirmed by investors in the US. The Dow Jones closed up 1.8% and the S&P 500 closed up around 2%. Both were further boosted by good numbers from the services sector. Yesterday the UK also saw an improvement in activity. 

The moves by Japan, coupled with a decision to hold interest rates in Australia, have increased expectations of further quantitative easing by central banks. In an interview with the Wall Street Journal Charles Evans, president of the Federal Reserve Bank of Chicago, called for strong action to boost the economy and for inflation to be raised above 2%.

Today six firms on the FTSE 100 go ex-dividend -  when investors buying the shares will not be entitled to the next dividend payout - pushing down their share prices and estimated to knock 1.16 points off the index: These are Admiral Group, Alliance Trust, British Land, Capital Shopping Centres, Kingfisher, Weir Group and WPP Group.

Nine out of the 10 biggest risers on the FTSE 100 were miners, led by Antofagasta, up 4.26% at £13.23 and Anglo American up 3.82% at £27.42.

The only non-miner in the top ten is British Airways, up 3.38%, a rise of 9 points to £2.63 after reporting increased traffic yesterday although the airline's shares are still down nearly 2% over the week.

Losers include Kingfisher, owner of B&Q, down 1.34% at £2.27, and Sainsbury which is down 1% at £3.85 after publishing a trading update in which it said austerity measures by the government could make conditions difficult.  

The price of gold was $1,347 per ounce and oil stood at $83.5. The pound was worth $1.59 against the dollar and €1.146 against the euro.