Stocks rise as Irma risk is downgraded

Market report Perry Gourley

London’s blue chip index followed global stocks higher after Hurricane Irma was downgraded and fears over geopolitical tensions with North Korea started to subside.

The FTSE 100 rose nearly 0.5 per cent or 35.99 points to 7,413.59 points, but was surpassed by its European peers including the French Cac 40 and German Dax which ended the day higher by 1.2 per cent and nearly 1.4 per cent, respectively.

Investors who turned to safe haven assets like bonds and gold in light of worsening tensions between US allies and North Korea, started to return to riskier trades like equities, helping give stock markets a boost.

David Madden, a market analyst at CMC Markets UK, said: “The lack of hostilities in relation to North Korea and the downgrading of Hurricane Irma to a category one storm has prompted traders to buy back into the market. North Korea celebrated the founding of the state over the weekend, and investors were worried the event could have prompted Pyongyang to mark the occasion by testing a missile.”

In UK stocks, BP rose 3p to 449.1p after the oil giant announced plans to float its US pipeline assets on the New York Stock Exchange. The oil major said the filing with the US Securities and Exchange Commission would lead to an initial public offering of BP Midstream Partners in the fourth quarter of this year.

Primark owner Associated British Foods fell 162p to 3,103p, despite upping its full-year outlook. AB Foods now expects full-year sales at Primark to rise 13 per cent on a constant currency basis, with the UK seeing particularly strong turnover growth of 10 per cent. Shares in tthe global intelligence and security firm rose after it said it is acquiring cybersecurity business Auditsec Services. The consumer goods firm behind the Russell Hobbs brand saw shares fall sharply after it warned over the impact of falling consumer confidence.