FTSE follows Europe peers with growth

Market report Emma Newlands

The FTSE 100 followed European equities higher, as the success of President Emmanuel Macron’s party in the French legislative elections convinced investors of growing political stability on the continent.

London’s blue-chip index ended the day up 60.27 points at 7,523.81, while its European peers like the French Cac 40 and German Dax rose by 0.9 per cent and 1 per cent respectively.

Investors were also keeping an eye on the Brexit negotiations, which kicked off during the session with the UK’S Brexit Secretary David Davis meeting the European Commission’s chief negotiator Michel Barnier in Brussels.

Sterling weakness also buoyed the FTSE 100, as listed multinational firms tend to benefit when earnings in foreign currencies are stronger. The pound was down 0.3 per cent versus the US dollar at $1.273, but was flat against the euro at €1.141.

In UK stocks, Sainsbury shares were one of the best performers on the FTSE 100, rising 5.7p to 258p after reports emerged that the supermarket has tabled a £130 million bid to acquire convenience store operator Nisa.

Standard Life shares climbed 9.3p to 398.6p, while shares in Aberdeen Asset Management jumped 14.3p to 299.7p, after shareholders overwhelmingly backed an £11 billion tie-up between the two firms.

The biggest risers on the FTSE 100 included Glencore, up 8.2p to 287.95p, and Wolseley, up 119p to 4,884p.

The biggest fallers included Hammerson, down 8p at 594p, and Pearson ,down7.5pto 705.5p. The retailer was the top riser on the FTSE 250 after being upgraded by Exane on the prospect of it striking a tie-up with Amazon. The Edinburghbased firm closed as the worst midcap performer after updating on an India tax dispute, but has “high” confidence in its case.