Developments encourage investors

The FTSE 100 soared more than 2% yesterday as investors continued to enjoy the election result and took comfort in the US and China taking the first tentative steps towards a new trade deal.

By close of play, it was up 166 points at 7,519, hitting a fourmonth high in the process, as the mainly international focused businesses on the index enjoyed the optimism from politicians that the trade war is de-escalating.

Just three of the 100 listed companies – Pearson, M&G and Land Securities – saw shares fall yesterday.

A pound was worth 1.333 dollars – flat on the day, while the pound dipped against the euro by 0.18% to 1.196.

Markets in Europe also enjoyed the US-China deal, with the CAC 40 in Paris ending up 1.2%, while the DAX 30 in Frankfurt closed up 0.9%.

The FTSE 250, which is primarily made up of UK-focused companies, also continued its stellar rise since last Friday’s election result.

Having hit an all-time high on Friday, it beat that record, closing up 412 points, or 1.9%, at 21,920.69, following 4% rises last week.

David Madden at CMC Markets said: “The news relating to China has boosted mining and oil stocks, while the Boris bounce is assisting banks, house builders in addition to retailers.”

In company news, Mike Ashley’s Sports Direct watched at its shares hit a four-year high, closing the day up 31%, or 112.2p, at 472.2p. The jump came as the retail tycoon announced a jump in profits and insisted his plans to overhaul the business was working well.