FTSE recovers from Euro rout

BRITAIN’S blue-chip shares rose yesterday, rebounding from a Europe-wide rout the previous day and helped by better-than-expected US housing data which boosted global risk appetite.

The FTSE 100 index rose in tandem with US stocks following the release of US new home sales data, which dropped to four-month lows but came in above analysts’ expectations. The UK index closed up 0.8 per cent, or 43.92 points higher, at 5,709.49.

Yesterday’s rebound came after the index shed 1.9 per cent on Monday. Markets will now look ahead to results from the US Federal Reserve’s rate-setting Federal Open Market Committee (FOMC) today and the release of first-quarter UK GDP data.

Broker comments set the tone for the day’s top winners and losers. Man Group, the top performer, gained 4.8 per cent, rebounding after sharp losses in the previous session as UBS said it saw M&A potential for the world’s largest listed hedge fund, which declined to comment.

Both Credit Suisse and Davy Research upgraded their recommendations on the owner of British Airways and Iberia, boosting shares in International Airlines Group by 3.6 per cent.