Switzerland's skyrocketing currency rattled the FTSE 100 yesterday but the index recovered from the jitters, and a rise in miners and energy stocks helped lift the market.
The blue-chip FTSE 100 index closed up by 1.7 per cent at 6,498.78 points. The FTSE had fallen after the Swiss National Bank (SNB) decided to scrap its cap on the euro value of the Swiss franc.
Dealers said the SNB’s decision had unnerved investors as it raised the possibility of future unanticipated moves by other central banks.
However, the market volatility also drove up the price of gold, a safe haven in times of economic uncertainty, which in turn lifted the shares of gold miners Randgold and Fresnillo.
Randgold was the best-performing FTSE 100 stock in percentage terms, rising 6.4 per cent, while Fresnillo advanced 4.8 per cent.
A rebound in energy stocks, as the oil price came back from near six-year lows, also helped to lift the FTSE, since these stocks account for around 20 per cent of the index’s overall market cap.