FTSE back in black as tariff fears subside

Market report Hannah Burley

Markets made gains as traders’ fears over a possible trade war eased.

Following threats from Brussels earlier in the week, reports suggested the US would walk away from its plan to slap tariffs on EU car makers.

The FTSE 100 managed to break through the 7,600 mark, ending the day 0.4 per cent, or 30.13 points, higher at 7,603.22.

Easyjet’s shares fell 13p to 1,623p after it revealed that nearly 1,300 flights were cancelled lastmonth,withnoendinsighttoairtrafficcontrol strike action.

Housebuilding giants Persimmon and Bovis Homes have signalled robust conditions in the new-build market. In its half-year trading update, Persimmon posted a 5 per cent rise in revenues to £1.84 billion in the six months to 30 June. Shares fell 7p to 2,475p. Bovis Homes said in a trading update posted separately that it is set for a “significant step up” in first-half profits after seeing a better-than-expected 4 per cent rise in legal completions to 1,580. Bovis shares closed the day 24p lower at 1,098p.

Purplebricks’ losses have widened. The group made a pre-tax loss of £26.1m for the year, up from a £6m loss the year before. Revenues for the year ended 30 April soared 101 per cent from £46.7m to £93.6m, with UK sales up 81 per cent to £78m. Shares edged up 0.2p to 318.8p.

The biggest risers on the FTSE 100 included Evraz, up 14.6p to 504.8p,and Glencore ,up 6.65p to 326.1p.

The biggest fallers on the FTSE 100 included Berkeley Group, down 80p to 3,612p, and Next, down 106p to 5,840p. Shares in the retailer surged after it reported higher sales and its second special shareholder payout in two years despite tough conditions. A rise in Primark shares was overshadowed by a drop in shares of owner A.B. Foods, as weak EU sugar prices continue to weigh the group down.