Post-brexit rollercoaster ride continues

Market report Emma Newlands

London’s premier index continued its post-brexit fluctuation, performing a dramatic rebound as the markets priced in a 78 per cent chance of interest rates being cut next week.

The FTSE 100 index was 70.2 points higher at 6,553.79 amid mounting speculation that the Bank of England is to slash the cost of borrowing from 0.5 per cent where it has been since 2009.

Dovish comments from the US Federal Reserve also helped the London market recover from hefty falls on Wednesday, appearing to dismiss a potential interest-rate hike until it gets a better grip on the impact of the Brexit vote.

It helped to ease Brexit concerns on London’s top-flight index, with banking and house-building stocks stepping up after punishing falls in previous sessions. Royal Bank of Scotland was among the biggest risers, up 6.5 per cent to 158.6p, while Charles Church builder Persimmon was 48p up at 1,337p. NEW YORK: Wall Street gave up an early gain and finished the day more or less where it started.

Energy companies took some losses as the price of crude oil dropped sharply.

The Dow Jones industrial average was off 22.74 points, or 0.13 per cent, ending the day at 17,895.88 while the broader Standard & Poor’s 500 index fell 1.83 points, or 0.09 per cent, to finish on 2,097.90. The Nasdaq composite index, meanwhile, rose 17.65 points, or 0.36 per cent, to close at 4,876. The Primarkowner was the biggest riser on the top flight after sales at the clothing chain jumped 7 per cent in the 40 weeks to 18 June. The firm fell after revealing its planned purchase of Concepta Diagnostics, and its launch of a placing and open offer to raise £3.5 million.