Intel results drive ARM stock higher to push Footsie over 6,000 mark

FTSE: 6,022.26 (+125.39) Mid-250: 11,756.19 (+181.66) Small Cap: 3,270.41 (+30.26)ARM HOLDINGS topped a resurgent FTSE 100 yesterday after strong numbers from US chipmaker Intel helped the stock, while a wider trend for good corporate earnings across the Atlantic boosted risk appetite on global markets.

The designer of processors used in mobile devices including Apple’s iPad and iPhone rose 5.7 per cent to 608.3p after its US rival became the latest hardware company to benefit from an unexpected rebound in business spending on information technology, especially for computers designed to display the internet, one of Arm’s stronger markets. It was also helped by talk Apple was ready to launch its fifth version of the iPhone in September.

The FTSE 100 ended the session 125 points higher at 6,022.26, a rise of 2.1 per cent. It was the first time in five sessions it spent time above the 6,000 points mark.

Arm Holdings was the only stock from outside the resource sector among the top 10 best performers as investors bet that the global economic rebound was looking stronger.

“The 6,000 level is the main divider line on the FTSE 100 and this week should provide a clue to the intermediate trend once the market has decided which side of it to play with,” predicted Sandy Jadeja, chief technical analyst at City Index.

The best single gain in the resource sector Antofagasta, the Chilean copper and gold miner, which added 5.5 per cent to £13.91 as gold prices hit $1,500 for the first time. Silver prices hit a 30 year high, lifting Fresnillo, a Mexican miner of the metal, by 3.4 per cent to £16.12.

Ferrexpo jumped 5.7 per cent to 464p amid speculation Vale, the world’s largest iron-ore producer, may make a takeover approach.

Traders were looking through the minutes from the Bank of England’s April monetary policy committee meeting for insight into the outlook for interest rates in the UK.

The MPC once more voted six-three in favour of leaving the cost of borrowing at historic lows of 0.5 per cent, with Andrew Sentance, Martin Weale and Spencer Dale, the Bank’s chief economist, calling for an increase.

The minutes showed that the committee thought the path of near-term inflation was likely to be higher than forecast in February. – (Copyright The Financial Times Limited 2011/Bloomberg)