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London shares edged higher on Monday but investors appeared to be largely unmoved by a weekend rate cut by People's Bank of China, traders said.

The benchmark FTSE 100 index climbed 0.28 percent, or 19.66 points, in opening trades to 6,966.32 points.

The People's Bank of China (PBoC) on Saturday cut interest rates by 25 basis points, citing "historically low inflation" among the factors behind its decision.

 

 

The move is the latest aimed at helping the economy regain its lustre after it grew in 2014 at the slowest pace since 1990. Last month the central bank cut the percentage of funds banks must hold in reserve to try to boost lending.

"An overnight rate cut by the PBoC has largely been shrugged off by the European markets," said Jonathan Sudaria, a dealer at the London Capital Group online trading firm.

"What with so many central banks resorting to the policy to prop up their economies, it's more a sign of weakness than something to get the bulls geed up about."

Investors will be watching several key events this week, including political gatherings in China, a meeting of the European Central Bank and the release of US jobs figures.

Elsewhere in Europe, Frankfurt's DAX 30 inched up 0.06 percent early Monday to 11,408.28 points and the CAC 40 index in Paris slipped 0.28 percent to 4,937.43 compared with Friday's close. AFP