LSE: FTSE 100 rises led by EasyJet, US data in focus

Britains FTSE 100 index edged higher on Tuesday, led by British budget airline EasyJet Plc, with investors being encouraged by speculation of fresh economic stimulus in China after recent downbeat figures. Low inflation numbers out of the U.K. supported BOEs view to keep interest rates at a record low. Market players also monitored diplomatic developments between Russia and the West and awaited the release of key housing and consumer sentiment data out of the US to gauge the recovery state of the worlds biggest economy after the harsh winter.

Britains blue-chip index rose by 1.15% to 6 595.30 points by 9:52 GMT, having shifted in a daily range between 6 597.00 and 6 535.00 points. The index fell 36.78 points, or 0.56%, on Monday to close the session at 6 520.39 points, weighed on by concern over the situation in Ukraine and numbers signaling an economic slowdown in China.

Inflation figures in the U.K. in February overall matched projections. Consumer prices jumped by 0.5% in February following a 0.6% contraction in the previous month. Year-on-year, the Consumer Price Index also matched expectations and marked a 1.7% gain, compared to Januarys 1.9%. This was the lowest level since 2009 and largely supported Bank of Englands stance to keep interest rates at a record low.

Core consumer inflation rose to 1.7% last month on an annual basis, beating expectations to remain flat at 1.6%, while the Producer Price Index Input marked a 0.4% contraction in producer prices, defying analysts expectations for a 0.3% jump after Januarys 0.9% decline.

Gainers, losers

Gains were led by EasyJet as the British budget airline revised up its first-half outlook, forecasting that its loss will narrow in the six months through March to a similar level from a year earlier. EasyJet Plc rose by 5.91%, or 96.50p, to 1 728.50 pence by 9:41 GMT.

Second-biggest gainer for the day was Kingfisher. Europes largest home improvements retailer said it would pay out 200 million pounds to its shareholders in the current year following a 4.1% rise in 2013-2014 profit, which met expectations. Kingfisher jumped by 5.38%, or 21.85 pence, to 428.35 pence.

Traivs Perkins was the third-biggest gainer for the day. The Wickes DIY chain owner soared 3.72%, or 67.00 pence, to 1 869.00 pence after Citigroup upgraded its stock to buy from neutral.

Also in corporate news, Royal Bank of Scotland jumped by 1.40%, or 4.25p, to 307.85 p by 9:44 GMT. The lender was reported to have had a contact with Sumitomo Mitsui Financial Group regarding the sale of its US retail business, while Mitsubishi UFJ Financial Group has also considered a bid.

Marks & Spencer managed to rise back to positive daily territory after trading mostly lower on the day. The retailer said two if its most experienced directors, Darrell Stein and Clem Constantine, will depart from the company this summer. Shares of the company traded at 454.60 pence at 9:49 GMT, up 0.13% on the day.

Among the very few losers for the day were British Sky, Sainsbury and ARM Holdings. British Sky lost 0.88%, or 8.25 pence, to 933.25 pence by 9:43 GMT. Sainsbury fell by 0.39% to 309.20 pence, while ARM Holdings was down 0.10% and traded at 977.50 pence.