Footsie bounces back as Wall St hits record high

UK companies began the second half of the year on the right foot yesterday, with the

FTSE 100 recovering some of last week’s losses as US markets hit record highs.

The FTSE’s poor performance last week secured June’s position as the index’s weakest month since early 2016. But yesterday was a different story, with blue chips rising 0.9pc, or 64.37, to 7377.09.

Mining stocks dominated the FTSE, benefiting from a shock increase in Chinese factory demand, which hit its quickest pace in three months in June.

Among the sector’s biggest winners were Glencore, which rose 5pc, or 14.4p, to 301.6p, Rio Tinto, which advanced 4.1pc, or 132.5p, to 3274.5p, and Anglo American, up 4pc, or 41p, to 1065p.

Gas and electric firms also enjoyed a boost after Ofgem – Britain’s energy regulator – announced proposals to cap energy bills for 2m vulnerable customers and make it easier to switch suppliers. The idea of an industry-wide price cap battered energy firms when it was floated by Prime Minister Theresa May in the Conservative Party’s general election manifesto.

But analysts at Bernstein said yesterday’s watered- down proposals are unlikely to hit the Big Six energy firms, which account for around 85pc of the UK’s market.

They said Ofgem has taken a ‘ measured and pragmatic’ approach to regulation, which at least partially fulfils the Tories election promise.

But the proposals are already facing criticism from the Labour party, which also campaigned for a broad price cap.

SSE rose 0.8pc, or 12p, to 1465p, while energy firm Centrica rose 1.8pc, or 3.5p, to 203.7p, and electricity company Drax Group jumped 2.8pc, or 9.2p, to 334.9p.

The Dow Jones also kicked off the second half of 2017 at a strong pace, climbing 200 points in morning trading to hit a record intraday high of 21,557, lifted by energy and bank stocks.

The index’s biggest gainers were investment bank Goldman Sachs, up 2.4pc, or $5.38, to $227.28, and oil and gas refiner Chevron, up 1.9pc, or $1.97, to $106.30.

The Dow was boosted by data which showed US factory activity jumped in June, which is generally seen as a strong indicator of economic recovery.

It eased off record highs throughout the day to close at 21,479.27. In the UK, healthcare PR firm

Huntsworth shot to its highest value in more than three years after buying an international marketing group for £24.7m. Huntsworth saw £11.5m added to its value after announcing the purchase of The Creative Engagement Group from private equity firm LDC.

Huntsworth said the deal will increase its technological abilities while also allowing The Creative Engagement Group to increase its healthcare expertise and share of the US market.

The purchase led analysts at Numis to upgrade Huntsworth’s price target to 77p from 71p and reiterate a ‘buy’ rating.

It has seen stocks rise 61.8pc since the beginning of January.

Yesterday, Huntsworth’s shares rose 6pc, or 3.5p, to 61.5p. In the mid- cap index, BGEO

Group, the London-listed holding firm for the Bank of Georgia, crept around record highs after announcing plans to split into separate banking and investment businesses. Shares rose 4pc, or 139p, to 3633p.

Oil and gas explorer Premier Oil advanced 2pc, or 1p, to 51p after raising its stake in Dorset’s Wytch Farm oil field by 3.8pc for £11.7m.