As the European Central Bank acts to lift global markets, the FTSE has risen to its highest mark since December 2007 – another sign of sure economic growth.<br />
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Moves by both the European Central Bank and the Reserve Bank of Australia have had positive effects on the London Stock Exchange, which closed Monday at 6557.30, a rise by 35.84 points. Such an increase hasn’t been seen in almost six years.<br />
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The Reserve Bank of Australia announced rate cuts just last week and the European Central Bank has also indicated that it would soon be taking even more action to help boost the market. <br />
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“Investor appetite for risk assets continues unabated this week as accommodative central bank policy coupled with strong corporate performance fuels demand for equities. The resulting bounce in Asian indices overnight fed a stronger start in the UK this morning, and blue chip stocks have built on that throughout the session,” explains Alex Young, a CMC Markets senior sales trader.<br />
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Thanks to the central bank’s stimulus measures, both bank and mining shares were some of the highest risers. Insurance and construction companies, particularly house builders, also showed improvement.<br />
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News of the FTSE’s six-year peak coincides with improvements in the housing market, which is showing some signs of an emergence from the relatively sluggish environment it has been for the last year.<br />
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The government’s latest measures within the national budget are also likely to stimulate the economy and the FTSE alike. <br />