US Fed chief ’s reappointment puts some fizz in FTSE after dire week

The FTSE rebounded after last week’s dire showing as the nomination of Jerome Powell to the US Fed for another term helped stabilise trading.

European stocks have continued to waver amid caution over worsening pandemic statistics in some countries but London made a calm and assured start to the week.

London’s top flight closed 31.89 points, or 0.44%, higher at 7,255.46.

Michael Hewson, chief market analyst at CMC Markets UK, said: “Despite opening slightly higher, European markets spent most of the day trading in broadly negative territory until the afternoon announcement of the confirmation of Jay Powell as Fed chairman for another four years helped provide an afternoon uplift.

“This news has helped outweigh the broader negativity that has seen the euro slide back towards its recent lows, as protests in Europe over new Covid-19 restrictions acted as an initial broader drag on sentiment.”

Chris Beauchamp, chief market analyst at IG, said: “Equities traditionally do better around Thanksgiving and into the end of November, and the continued resilience comes despite the worsening situation in Europe and a stillunsolved supply chain problem.”

The pound had a positive session but lost steam against the euro as the eurozone currency rebounded slightly.

Sterling moved 0.08% higher versus the dollar at 1.341, and decreased 0.06% against the euro at 1.190.

Marks & Spencer finished the day 4.7p higher at 245.5p after reports New York private equity giant Apollo is potentially targeting the high street stalwart for a takeover.

The price of oil continued its recent slump on the back of speculation that the US and China might coordinate efforts to release further oil supply.

Brent crude dropped by 0.2% to 79.82 dollars per barrel when the London markets closed.

“Continued resilience comes despite the worsening situation in Europe