US confidence boost pushes FTSE higher

Positive sentiment in the US acted as a tonic to investor confidence, driving the FTSE 100 into positive territory.

London’s premier index ended the day up 76.6 points at 7,117.28 following a mixed set of US midterm election results, which saw the Republicans lose control of the House of Representatives but keep control of the Senate.

David Madden, market analyst at CMC, said: “The rally on the back of the midterms acts as a nice continuation to the bounce back that started last month.

“The politics of the US acts as a nice distraction today, but it doesn’t change that fact that investors are still concerned about the budget situation in Italy, and the Us-china trade spat.”

In stocks, ITV ended the day bottom of the index after the broadcaster warned an “increasingly uncertain economic environment” could see total advertising revenues fall 3 per cent in the fourth quarter and be broadly flat over the full year. Shares closed 4.25p lower at 150p.

Marks & Spencer shares also took a hit, falling 1.6p to end the day at 300.9p, after the high street titan reported declining sales in the food and clothing and home divisions.

The pound was in buoyant mood, gaining 0.3 per cent versus the US dollar at 1.314. Against the euro, sterling was flat at 1.146.

The biggest risers on the FTSE 100 included NMC Health, up 144p at 3,500p, Associated British Food, up 105p at 2,565p, and Melrose Industries ,up6.5pat174p.

The biggest fallers included Royal Mail, down 5pat348p, Direct Line, down 4.1p at 318.6p, and GVC, down 8.5p at 883p