Tech gets boost as hopes fade on rebound

The UK’s technology stocks notched up a strong performance yesterday as investors across the pond ran to the US tech giants.

The popularity of the FANGs – Facebook, Amazon, Netflix and Google – in New York helped lift their smaller technology-driven counterparts in the UK, said IG chief market analyst Chris Beauchamp.

“The FTSE 100 has spent the day giving back its earlier strong gains, and while ‘tech names’ like Just Eat Takeaway and Ocado have made headway it is minors that have trimmed the opening bullishness,” he said.

The popularity of the US tech stocks was explained by jobs figures out of the country.

According to a report from the ADP Research Institute, 374,000 jobs were created in August, below expectations.

Mr Beauchamp said the technology stocks gained as they “found renewed appeal among investors worried the economic rebound is beginning to fade, and that it is time to return to Apple and Amazon, known for their powers of cash generation.”

It helped push the UK’s FTSE 100 index up by 0.4% at the end of the day. It ended at 7,149.84 points, a rise of 30.14.

In New York, the Dow Jones was trading down 0.1% while the S&P 500 had gained 0.2% when markets closed in Europe.

The Dax dropped 0.1% while the Cac 40 in Paris rose 1.2%.

Sterling rose less than 0.1% against rivals. By the end of the day a pound could buy 1.3789 dollars or 1.1635 euros.

Wetherspoon became the latest hospitality firm to warn of problems in its supply chains after struggling to get Carling and Coors beer. But investors were not put off and shares closed up 0.5%.