Markets bounce back as commodities rally

European markets rallied this afternoon after a cautious start to the week as commodity prices rebounded.

The FTSE 100 climbed 1.26% this afternoon to 6,039.82, led by Arm Holdings, after positive broker comment on the European component making sector. The firm makes chips used in Apple's iPad and iPhone products and has been rumoured to have bid interest from US and European sources. Its shares rose 4% to 583p. The biggest loser was engineering company IMI, which dropped 2.18% to 989p. The Dax gained 88.13 points or 1.24% to 7,191.04, while the Cac 40 gained 48.60 points or 1.22% to 7,191.04 in late trading. Commodities recovered some ground loss yesterday after Goldman Sachs publi...