Post-election elation goes on for Footsie

The FTSE 100 stormed ahead, gaining more than 2 per cent as the results of last week’s general election continued to reassure traders and a trade deal between the US and China appeared to take shape.

London’s blue-chip index closed 165.61 points higher at 7,519.05 – hitting a four-month high – as international-focused businesses rejoiced in optimism from politicians that the trade war is de-escalating. Just three of the 100 listed companies – Pearson, M&G and Land Securities – saw shares fall yesterday.

The FTSE 250, primarily made up of Ukfocused companies, also continued its march since the election.

Connor Campbell financial analyst at Spreadex said: “The gains only ramped up as the session went on. The FTSE led the charge, boosted by a mix of the trade relief and residual goodwill related to last Friday’s election result.”

At the London market close sterling was trading flat at $1.333 but had dipped 0.18 per cent against the euro to €1.196.

In company news Aberdeen-headquartered Firstgroup, which operates the Great Western Railway,southwesternrailway,transpennine Express and Avanti West Coast, hired advisers to formally look into selling off its US assets.

Firstgroup said it would “explore all options” regarding its North American contract businesses, First Student and First Transit, “including a potential disposal”.

The company has changed its position already over the future of the business, reacting to shareholders’ demands. Shares closed up 5.9 per cent at 125.4p.