A bumper crop of results sent shares in catering giant Compass Group soaring today helping London’s top index post a strong day.
The capital’s premier FTSE 100 index climbed 1.44 per cent to 7,347.66 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, added 1.35 per cent to 19,647.15 points.
Both indexes have recovered from their bruising start to the week.
Compass Group surged to the FTSE 100’s today, driven by investors pouring into the firm after it upped its revenue forecasts.
Stocks closed over seven per cent.
Industrial giants provided much of the FTSE 100’s upward thrust today as investors’ concerns about a global economic cool down eased.
Miners Rio Tinto, Glencore and Anglo American all jumped more than three per cent.
A large proportion of the FTSE 100 is made up of so-called “old-economy” stocks, such as oil firms, miners and commodities producers.
Traders have been betting that a combination of countries emerging from the Covid-19 crisis and the switch to less carbon intensive production methods will drive a commodity boom that will boost many of the FTSE 100’s companies.
A weaker pound also boosted industrials.
Consumer stocks weighed the index down on jitters that consumers will pull back spending this year amid a tightening cost of living squeeze.
Online supermarket and middle-class favourite Ocado sank to the bottom of the FTSE 100, dropping 3.44 per cent.