FTSE 100 Index rocketed on Wednesday after People's
Bank of China lowered banks' reserve requirements by 0.5 p.p. Resource and
mining companies reacted immediately as the second biggest economy in the world is an
important consumer of natural resources. BHP Billiton PLC gained 1.7%, Xstrata PLC
added 2.9% whereas Rio Tinto PLC edged up 1.6%. Financials HSBC Holdings PLC and Barclays
PLC managed to offset their losses from downgrading on China's report gaining
0.3% and 3.6% respectively. On the downside Cairn Energy PLC declined 4% after
closing 2 Greenland's exploration wells.