FTSE rallies during ‘funny old session’

Markets rallied again, building on the previous day’s record results, as news from the US continues to fill traders with hope of better times.

Yesterday saw something of a rollercoaster of a session, with the FTSE 100 swinging from almost 5,750 points shortly after opening to around 5,400 at midday. But it ended the day at 5,688.2 – a 242.19-point or 4.5 per cent jump.

“A bit of a funny old session but the positive sentiment is holding,” said Neil Wilson, chief market analyst for Markets.com. He added that the FTSE 100 is down by around a quarter yearto-date and about 20 per cent lower this month.

It comes as the German government passed a massive rescue bill, and the US Senate looks set to approve its rescue package worth £1.7 trillion.

CMC Markets analyst David Madden said: “Government intervention is the name of the game today as Germany will pursue a €750 billion rescue package… The wider positive sentiment has boosted many industries that have been hammered recently, such as airlines, transport, banking, hospitality and mining.”

The good mood was replicated on the other side of the pond where the S&P 500 and the Dow Jones were up by more than 3 per cent and 5 per cent respectively.

Sterling gained 0.7 per cent to $1.1834. One pound will buy €1.0911, a 0.1 per cent rise.

Next shares surged 8 per cent as it offered staff a 20 per cent bonus if they volunteered to come to work and pick clothes for online orders.

Housebuilder Persimmon rose 15 per cent, while Bellway dropped 1.5 per cent even as both revealed they were shutting construction sites as demand for new homes plummets.