Strong opening in US has effect on FTSE 100

The FTSE 100 nudged up 53.41 points, or 1%, to 5,563.74 yesterday as a strong opening on Wall Street lifted investors on this side of the Atlantic.

London’s top flight had started the day in reverse as markets were shaken by tumbling oil prices over the weekend.

Connor Campbell, analyst at financial services firm Spreadex, said: “A positive start from the US, though not the kind of start that necessarily has the robustness to carry through to closing time, helped ease the European indices into the green.”

Mr Campbell said it was “notable” for the Footsie to achieve any growth at all, given the collapse in oil prices earlier in the day.

Shell and BP both saw their share prices rise as traders considered the oil price slump to be only a short-term weakness. Shell’s “A” and “B” shares rose 42.4p to 1,325.2p and 31.4p to £12.62 respectively, while BP gained 18.1p at 323.6p.

FTSE 250-listed FirstGroup was up 0.9p, or nearly 1.9%, at 48.4p after the Aberdeenbased transport firm announced a three-year extension to its deal for operating the Great Western Railway.

FirstGroup said the deal, which initially runs concurrently with UK Government emergency support, would deliver “continuity” of services beyond the immediate impact of Covid-19.