FTSE finishes day in the green as European markets rebound

European markets bounced back after major declines during the previous two trading sessions.

Retail stocks again lagged behind on the FTSE, with Sainsbury’s and JD Sports among the few firms going backwards yesterday.

The FTSE 100 ended the day up 87.24 points, or 1.19%, at 7,389.98 points, while the German Dax increased by 0.72% by the end of the session and the French Cac rose 0.2%.

Michael Hewson, chief market analyst at CMC Markets UK, said: “Today’s recovery from the lows has been helped by a strong lead from Asia markets after Chinese banks cut their five-year loan prime rates in an attempt to kickstart an economy that is slowing sharply due to various Covid restrictions.”

Wall Street took its early cue from Europe to open higher but lost steam as traders continue to worry about the Fed’s recent hawkish tone regarding rate rises.

Sterling made further gains during a dreadful week for the dollar over concerns about a possible economic slowdown in the US.

The pound increased by 0.2% against the dollar to 1.249, and increased 0.17% against the euro to 1.183.

In company news, M&C Saatchi shares leapt higher after consultancy business Next Fifteen Communications swooped on the advertising firm in a £310 million takeover deal.

Shares in the company shot 48p higher to 213p at the close.

THG also shot higher on the back of takeover talk after a bidding war began for the embattled online beauty and health retailer when it rejected a £2.07 billion from Belerion Capital and King Street Capital, as property tycoon Nick Candy also said he was preparing a potential move for THG.

Shares in the retail business closed 28.55p higher at 145p.

The price of oil nudged higher at the end of another choppy day for the energy sector as worries over supplies related to Russia butted heads against demand concerns driven by pandemic restrictions in Europe.

Brent crude increased by 0.31% to $112.39 per barrel when the London markets closed.

“Today’s recovery has been helped by Asia