Markets back in the black as tension eases

Market report Perry Gourley

London’s top-flight index pushed back into positive territory as investor jitters over North Korea’s missile launch and Tropical Storm Harvey eased on global markets.

The FTSE 100 index closed up 27.83 points to 7,365.26, as European markets gave up the gloom from the previous session when Pyongyang fired a ballistic missile over Japan.

Jasper Lawler, head of research at London Capital Group, said: “Relief returned to markets after two days of concern over North Korean missile threats and the huge damage inflicted on Texas by Tropical Storm Harvey.

“Equity benchmarks remain down for the week in a sign that investor sentiment is still fragile. 7,300 is proving to be decisive support in the FTSE 100.”

Sainsbury’s was sitting among the biggest risers following reports the Co-op Group had entered exclusive talks to buy Nisa.

Shares in Sainsury’s rose more than 2 per cent, or 5.1p to 235.8p, as Britain’s second biggest supermarket is thought to have halted takeover talks for the convenience store operator.

Marks & Spencer was also enjoying a positive session on the London market, lifting close to 1 per cent as it looked to franchise out its 27-store business in Hong Kong and Macau.

M&S said it has started discussions with longterm franchise partner Al-futtaim, which already operates 43 of its stores across seven markets in the Middle East, Singapore and Malaysia. Shares were up 3p to 317.5p.

The biggest risers on the FTSE 100 Index were Ashtead Group, up 77p to 1,672p, G4S, up 7.7p to 292.9p, and ITV, up 3.9p to 156.9p. The gene and cell therapy group said the US Food and Drug Administration (FDA) had approved a cell therapy treatment for leukaemia. The tool hire firm said that revenue growth had been “materially” lower than expected and warned over profits for the second half.