FTSE 100 CLOSE: London stocks rise on German confidence

The FTSE 100 has closed higher after investor sentiment was buoyed by better than expected German business confidence numbers.

Monday’s session ended with the blue-chip index climbing 47.81 points to 5,902.7, supported by the Ifo business climate index moving from 109.7 points to 109.8 in its fifth month running of gains.

Timo Klein, senior German economist at IHS Global Insight, says: “German companies are thus continuing to prove resilient to ongoing concerns about the eurozone debt crisis and the recent additional burden from higher oil prices.”

On the FTSE 100, global oil and gas exploration company Tullow Oil benefited most from the improvement in investor sentiment – rising 6.59% to close at 1,570p. The firm also reported this morning that it has found in excess of 20 metres of net oil pay at its Ngamia-1 exploration well in Kenya.

Aberdeen Asset Management was the second strongest climber, advancing 4.36% to 260.8p after posting a jump in the amount of money run, while global engineering company Smiths Group rose 2.84% to 1,049p after winning a contract worth more than €100m (£86.6m).

Chemicals firm Croda International advanced 2.81% to 2,156p and utility company Scottish and Southern Energy was up 2.74% to 1,348p.

The day’s largest fallers were precious metals producer Polymetal International, interdealer broker ICAP, financial services firm Resolution, engineering business Weir Group and banking group Lloyds.