FTSE 100 is driven back into the green as energy firm SSE shines

The FTSE 100 moved back into the green yesterday, pushing to its highest point since early May.

After a small fall on Tuesday the index closed up 0.5% a day later, a rise of 38.4 points to 7,522.75, joining other European indices that also posted comfortable gains.

It was driven up by energy company SSE, which bounced back from a torrid Tuesday after it showed that profits rose significantly in the year to March.

The business had been one of several whose shares were hit significantly on Tuesday after reports that the government might extend a possible windfall tax to power companies, and not just the oil and gas sector.

But there were further indications yesterday that the windfall tax on power companies might not be part of the government’s final package.

“Reports that a windfall tax would be too problematic to implement were also helping sentiment today, after yesterday’s falls with Centrica and Drax also higher,” said CMC Markets analyst Michael Hewson.

“After yesterday’s modest falls, markets in Europe have had a more positive bias today, edging higher on a day with little in the way of drivers.

“The FTSE 100 has had a solid day, pushing up to its highest level since May 5, while the Dax hit its lowest levels this week before rebounding back into positive territory.”

The Dax closed up 0.6% while Paris’s Cac 40 rose 0.7%. In New York the Dow Jones was trading down 0.1%, while the S&P 500 was up 0.2% shortly after European markets shut.

The pound could buy 1.254 dollars, a 0.03% drop, or 1.1765 euros, down 0.15%.

The biggest risers on the FTSE 100 were SSE, up 101.5p to 1,867.5p, Rolls-Royce, up 3.44p to 83.52p, WPP, up 29.6p to 905.2p, Kingfisher, up 8.1p to 261.4p, and Imperial Brands, up 56.5p to 336.6p.

The biggest fallers were JD Sports, down 7.3p to 112p, Severn Trent, down 77.0p to 3,071p, Prudential, down 21.3p to 987.2p, United Utilities, down 23.0p to 1,112.5p, and Endeavour Mining, down 35.0p to 1,822p.

“Markets in Europe have had a more positive bias, edging higher