FTSE buoyed by calm after storm clouds

Stock markets bounced back from the doldrums as investors snapped up cheap shares knocked by trade war fears a day earlier.

The FTSE 100 ended the day up nearly 0.8 per cent, or 59.37 points, at 7,651.33. David Madden, a market analyst at CMC Markets UK, said: “Bargain-hunters have been busy following the surprise news [the previous day] that the US is planning to slap tariffs on $200 billion worth of Chinese goods. Markets are calmer today, and some fresh buyers have entered the fold.”

Sterling edged into positive territory to trade higher by 0.14 per cent against the US dollar at $1.322, and rose 0.05 per cent versus the euro at €1.131.

In UK stocks, Sky shares jumped 51p to 1,545p after Rupert Murdoch’s 21st Century Fox was given the government’s all-clear to take over Sky, although it will still have to see off rival suitor Comcast.

Sofa chain DFS rose 1.4p to 200p despite warning over full-year earnings after the recent heatwave dented sales and shipments of made-toorder products from the Far East were hit by delays.

And B&M rose 9.3p to 423.7p as it reported a solid start to the financial year, with revenues growing 21.3 per cent for the period between 1 April and 30 June to £796.3 million.

The biggest risers on the FTSE 100 included Astrazeneca, up 184p to 5,434p, Micro Focus International, up 37.5p at 1,221.5p, and Compass Group, up 50p at 1,649p. The biggest fallers included Ocado Group, down 28.5p at 1,018p, BT Group, down 4.2p to 223.65p, and ITV, down 1.85p at 175.6p.