Mini-rally for FTSE 100 amid trade tensions

The FTSE 100 staged a mini rebound yesterday but trade tensions triggered by US President Donald Trump continued to grip investors.

London’s top flight ended the day up 28.08 points, or 0.37%, at 7,537.92.

It came after a day of heavy losses on the premier index, when trade war fears sparked a global equities rout, wiping nearly £45 billion off the FTSE 100 and pushing it to its worst one-day fall in over a year.

Connor Campbell, financial analyst at Spreadex, said: “Monday’s gory losses were followed on Tuesday morning by a wheezing attempt at a rebound.

“The markets became a tad more mixed on Tuesday, with the FTSE breaking out ahead of its peers in regards to its – admittedly meagre – rebound. Trade war tensions are suppressing trading.”

Global stocks have been rocked amid fears of an escalating trade war centred on the relationship between the US and China and the EU.

The index was also boosted by a weaker pound.

Sterling was trading 0.3% lower against the dollar at 1.323 and marginally lower versus the euro at 1.134.

In stocks, IAG ended the day at the foot of the FTSE 100 after MPs voted on Monday to approve a new third runway at Heathrow.

Analysts interpreted the development as meaning more competition for IAG at Heathrow. Shares ended the day 24.6p lower at 673.2p.

In oil, Brent crude was trading 1.83% higher at 76.2 US dollars per barrel.