FTSE leaps as global markets rebound amid slide in oil prices

Market report

The FTSE 100 leapt higher on the back of a rally for global markets as the price of oil dropped back.

Russian-linked stocks and financial firms were among the top performers in London as recent volatility continued.

The FTSE 100 ended the day up 226.61 points, or 3.25per cent, at 7,190.72 points.

Michael Hewson, chief market analyst at CMC Markets UK, said: “Markets in Europe have seen a sizeable rebound today, led by the Dax with decent sector gains across the board, helped by comments from the Russian foreign ministry which stated that it would be better if their goals in Ukraine were achieved through talks.

“We’ve seen a strong rebound in the likes of Russian miners Evraz and Polymetal after they both released updates saying that they didn’t consider themselves to be at risk of being affected by Russian

sanctions.

“Financials and banks have enjoyed another decent session today, on course for two strong days of gains, as the sector looks to shrug off some big declines in the past few days.”

Germanstockssawaparticularlysharprebound amid speculation that EU leaders might be on the cusp of pulling together a fiscal stimulus plan at a specially convened EU summit tomorrow.

The French Cac was up 7.13per cent and the German Dax surged 7.92per cent higher by the end of the session.

In the US, the main markets took their cues from Europe to open higher on the back of unwinding commodity prices.

Meanwhile, sterling lost pace against the euro, which improved ahead of Thursday’s European Central Bank session.

The pound increased by 0.02 per cent against the dollar to 1.316, and dropped 0.2 per cent against the euro to 1.189.

The price of copper, gold and oil all started to unwind on Wednesday as traders saw an opportunity to take profit following the jump to recent highs.

Brent crude slumped by 6.45per cent to 120.16 US dollars per barrel when the London markets closed.

The biggest risers on the FTSE 100 were Polymetal, up 63.68p at 155.7p, Evraz, up 14.58p at 92.54p, Melrose Industries, up 14.7p at 124.05p, and Electrocomponents, up 102p at 970p.

The biggest fallers on the FTSE 100 were Fresnillo, down 58.8p at 749.6p, BAE Systems, down 31.8p at 722.6p, BP, down 8.45p at 371.55p, and Anglo American, down 79p at 3,753.5p.