Chinese cash injection gives FTSE a boost

European indexes have soared in line with their Asian counterparts after Chinese authorities pumped 71.5 billion dollars (£54.9 billion) into the stock market.

Officials injected the cash to shore up markets amid the coronavirus outbreak and cracked down on short-sellers, leading to several days of slumps turning into big gains.

The growth spread to Europe yesterday, with the FTSE 100 enjoying its share of the spoils thanks to its heavy influence of oil and mining majors. It ended the day up 113.51 points, or 1.6%, at 7,439.82.

In Europe the Cac 40 in Paris and the Dax 30 in Frankfurt both closed 1.8% higher.

Even the price of oil enjoyed a solid performance – having slipped into a bear market on Monday – trading up 0.83% as stock markets closed, with a barrel of Brent Crude costing 54.90 dollars.

The pound had a good day as the latest HIS Markit/ CIPS PMI indicators showed a marked improvement in the UK construction sector since the general election – although the industry remains in decline.

As a result, the pound was up 0.25% against the dollar at 1.303, and up 0.39% against the euro at 1.1798.

The biggest risers on the FTSE 100 were Evraz up 25.4p at 381.7p, Ferguson up 478p at 7,378p, Glencore up 11.5p at 233.1p, BP up 18.85p at 471.55p, and Ashtead Group up 103p at 2,590p.

The biggest fallers were NMC Health down 34.5p at 1,001.5p, Polymetal down 34.5p at 1,222.5p, Centrica down 1.74p at 83.94p, Severn Trent down 29p at 2,565p, and Meggitt down 7p at 674.4p.