FTSE 100 closes higher after tumultuous week

Emma Haslett
Follow Emma
Markets spent the week lurching wildly (Source: Getty)

After a week spent yo-yoing between losses and gains, the FTSE 100 made up all its losses, closing at 6,247.9 points today - 0.9 higher than yesterday's close, and 60 points higher than it finished last week.

Global markets were all hit on Monday after weaker than expected manufacturing data prompted fears of an economic slowdown. As the Chinese government took desperate measures to calm trading, markets lurched wildly.

But although the FTSE 100 finished higher, there are still fears over a slowdown in China, and its potential to affect the UK.

Caroline Simmons, deputy head of UBS Wealth Management's UK investment office, suggested the FTSE 100 has approximately 10–15 per cent revenue exposure to China and Hong Kong.
"This implies that a 10 per cent devaluation of the yuan removes 1–1.5 per cent of sales," she said.
"The most direct impacts for the UK market come through companies with sizeable operations there (banks), high exposure to emerging markets (consumer staples), and via the mining sector, which has a heavy exposure to iron ore and other commodities. The share price moves we are seeing in FTSE 100 companies are clearly pricing in more than merely the decline in the yuan to date, and thus are anticipating either a further currency decline to come and/or further economic weakness."

Related articles