By Sara Sjolin, MarketWatch
Randgold extends gains after Thursday's rally
LONDON (MarketWatch) -- The FTSE 100 index erased a weekly loss
in volatile trading on Friday, as the U.K. benchmark's
heavily-weighted resource sector got a boost from firmer commodity
prices.
The FTSE 100 rose 0.3% to 6,518.39, setting it on track for a
0.3% weekly advance.
BP PLC (BP) posted one of the biggest gains in the London index,
up 3.8% after a judge's ruling cut the maximum penalty it faces for
the 2010 Gulf of Mexico oil spill to $13.7 billion. The judge said
the fine should be calculated on a spill of 3.19 million barrels,
rather than the 4.2 million barrels -- adding up to $18 billion --
sought by the U.S. Justice Department.
Other oil firms were also rising, as crude-oil futures (CLG5)
jumped 2%. Royal Dutch Shell PLC (RDSB) gained 0.8%, while BG Group
PLC rose 2.4%.
Mining firms, which had declined earlier in the day, trotted
higher as metals prices started to turn positive. Glencore PLC
(GLCNF) picked up 4.4%, BHP Billiton PLC (BHP) climbed 2.7%, Anglo
American PLC added 2.8%, and Rio Tinto PLC (RIO) gained 1.1%.
Randgold Resources Ltd. rose 1.9%, building on gains from
Thursday, when the surprise decision from the Swiss National Bank
to scrap the franc-euro exchange-rate floor spurred a rally for
gold futures.
The Swiss move sent shock waves through financial markets
globally, particularly in currency markets, where the euro and
dollar dropped significantly against the Swiss franc on Thursday.
Equity markets struggled for direction after the decision, but
eventually ended higher in Europe, with the FTSE 100 closing up
1.7% on Thursday. European stock markets were also mostly higher on
Friday, with Germany's DAX 30 index briefly moving into record-high
territory.
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