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Manufacturing data released today provided equity markets with a much needed shot of adrenalin. By around 1.30pm in London, the FTSE^® 100 index was 1.50% higher at 5767, just 33 points away from the next psychological barrier.

Traders will be keeping a close eye on the blue-chip index to see whether it can breach the next resistance level of 5800.

China’s manufacturing PMI unexpectedly rose from 50.3 to 50.5, confounding analysts who had expected the gauge to drop to 49.6; figures above 50 signify an expansion. Meanwhile, figures out of Europe’s biggest economy indicated that German manufacturing had rebounded for the first the time in four months. The PMI figures for January rose from 50.9 to 51, which was more than anticipated. Back home, the manufacturing PMI rose from an upwardly revised reading of 49.7 to 52.1, exceeding expectations for a rise to 50.

Also boding well for morale was a successful bund auction. Germany today sold more than €4billion of 10 year bunds at an average yield of 1.82%. This, in conjunction with solid manufacturing figures from China, Germany and the UK are stimulating risk appetite today.

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