Footsie ends three-day losing streak

Top-flight stocks in London rebounded, shaking off a three-day losing streak and gloom in global markets to notch up a gain of more than 100 points.

The FTSE 100 index closed 102.31 points, or 1.47 per cent, higher at 7,050.23. An early rally was led by banks and mining stocks, with shares in most blue-chip companies finishing the day higher.

Fiona Cincotta, senior market analyst at City Index, said: “Ignoring the negative sentiment that dragged on trading in US and Asia overnight, the FTSE bounded higher. Snapping a three-day losing streak and with only a handful of firms in the red, the FTSE managed to power back through 7,000.”

Oil prices also rebounded after declining earlier in the week, as expectation of a production cut grew. But growth was tempered by data showing a rise in US crude supplies.

B&Q’S owner Kingfisher finished the day in the red, down 7.5p to 238.8p as it warned there was “no quick fix” to its problems.

The company posted a slump in sales at the DIY chain and said that it will exit Russia, Spain and Portugal to focus on its core markets.

Talktalk shares were 3.6p higher at 125.6p as it reported narrower losses in half-year results. The company also confirmed plans to shift its headquarters from London to Salford in a move affecting hundreds of staff.

Babcock shares took a beating, falling 28.2p to 566p after it revealed a 64 per cent plunge in half-year profits. Profits were pushed lower by a £120 million charge related to the restructuring of its oil and gas business and other costs.