"The gains have been rather tepid in nature and are still some ways short of reversing the losses we saw last Thursday," 3.03pm: Wall Street on the front foot Michael Hewson, chief market analyst at CMC Markets UK, said: "It’s gearing up to be another positive session for European markets, with a modest rebound in copper prices and other metals prices helping to lift the basic resources sector. The airline sector has also been undermined by news that Spanish cabin crew at easyJet PLC (LSE:EZJ), down 6.48%, plan to strike in July. The disruption to the hospitality industry from the transport strikes has seen Premier Inn owner Whitbread PLC (LSE:WTB) fall 1.43% while the continuing chaos at Britain's airports has left International Consolidated Airlines Group SA (LSE:IAG) 1.38% lower. The online retailer's shares are down 3.37% at 848p. Less well received was the £578mln or 795p a share fundraising from Ocado Group PLC (LSE:OCDO). Packaging group DS Smith PLC (LSE:SMDS) is up 3.4% after well-received results. Mining shares have recovered from recent weakness, with Antofagasta PLC (LSE:ANTO) adding 3.72% and Rio Tinto PLC (LSE:RIO) rising 2.81%. Leading shares remain in positive territory heading into the close, with investors shrugging off continuing concerns about the economy, as well as the disruption caused by the start of this week's rail strikes.ĭespite surveys showing the rising cost of supermarket shopping and a slowdown in UK manufacturing, the FTSE 100 is still up 29.3 points or 0.41% at 7151.11. Even then it seems unlikely that inflation and growth concerns will have really subsided enough for a longer-term move higher." 3.55pm: Miners help support market It is up for debate whether stocks, once the initial energy has been expended, can turn this into something of at least a month. An absence of any more big-name rate increases this week will have helped sentiment to stabilise, and in any case markets had reached a washout low last week that seemed to promise at least a short-term bounce.”īeauchamp added: “Stocks are in a ‘buy everything’ mode, which is always a good way to start, but the real question is whether this bounce can run to longer than a week or so, which is all the last one managed. Those fears have been nullified with the strong form displayed across the American indices this afternoon.
In New York, around London’s close, the Dow Jones Industrial Average was 532 points, or 1.8% higher at 30,420, while the broader S&P 500 index added 2.4% and the tech-laden Nasdaq Composite gained 3.0%.Ĭhris Beauchamp, chief market analyst at online trading platform IG commented: “European markets had made gains yesterday while the US was on holiday but there is always lingering doubt that such moves can survive the return of Wall Street traders.
The UK blue-chip index ended 30.24 points, or 0.4% higher at 7,152.05, below the session peak of 7,193.90 but above the session low of 7,119.25. The FTSE 100 index closed higher on Tuesday as US blue-chips returned from a long holiday weekend in positive fashion following last week’s sell-off, although the underlying mood remains cautious amid recession worries after data showed UK grocery inflation soaring and manufacturing slowing. UK grocery inflation soars and manufacturing slows.