FTSE regains ground after global sell-off

Market report Emma Newlands

London’s blue-chip index started to bounce back from a major sell-off that wiped trillions of pounds off global markets this week in response to fears that rising inflation could spark interest-rate hikes.

The FTSE 100 Index ended the day up 1.93 per cent or 138.02 points at 7,279.42, breaking its losing streak and helping it recover from a plunge in the previous session when blue-chip stocks saw nearly £50 billion lopped off their value.

Indices across Europe posted gains, with Germany’s Dax up around 1.9 per cent and the Cac-40 in France lifting by 1.7 per cent.

Across Asia, Tokyo’s Nikkei 225 Day closed 0.16 per cent higher, though the Hang Seng Index in Hong Kong remained down by 0.89 per cent.

Markets were taking their cues from across the Atlantic after Wall Street swung back into the black in overnight trading and continued to push higher after markets opened.

The global equity sell-off had been building since Friday when traders became spooked by the prospect of tighter monetary policy.

Despite rising share prices, investors seemed to be taking a more cautious approach.

David Madden, a market analyst at CMC Markets UK, said equities were in recovery mode after a “turbulent” week, with the combination of shorting covering and bargain hunting helping the markets.

He added: “It has been a brutal week for investors, but some are keen to step in and take advantage of the fall in prices. There is still a sense we could be in for another leg lower, and for that reason some dealers are reluctant to get back into the market.” The utility giant was buoyed by news of fewer customer complaints in the last quarter, despite more supply interruptions. The miner suffered as gold lost its shine on the back of demand for safe haven assets falling as stock markets recovered.