MARKET REPORT

LONDON’S top-flight index rallied higher yesterday, taking its cue from American markets as traders tentatively re-entered the fray following a number of brutal sell-offs last week.

The FTSE 100 Index closed up 84.63 points at 7,177.06, rebounding from Friday’s session when the top tier was dragged 78-points lower by fears of potential interest rate rises across the globe.

Concerns that rising inflation may cause central banks to tighten monetary policy has left investors spooked, leading to volatile swings and trillions of pounds to be wiped off global markets.

However, Wall Street was enjoying a bright session on Monday, with the Dow Jones Industrial Average and the S&P 500 rising 1.6% and 1.3% respectively at the time of the London market close.

In European markets, France’s Cac 40 lifted by 1.2% and Germany’s Dax chalked up a 1.5% rise.

On the currency markets, the pound was marginally ahead against the US dollar at 1.38, while sterling slipped 0.1% to 1.12 in comparison with the euro.

Connor Campbell, Spreadex financial analyst, said the UK currency could be in line for a tough session today as markets react to the latest inflation data.

The biggest risers on the FTSE 100 Index were Evraz up 19.2p to 352.3p, NMC Health up 136p to 3,246p, Shire up 122p to 3,197p, Rio Tinto up 107p to 3,895.5p.

The biggest fallers were Severn Trent down 34.5p to 1,786p, United Utilities down 8.6p to 684.8p, Paddy Power Betfair down 70p to 8,080p, SSE down 7.5p to 1,182p.