London markets bounced back yesterday as a seeming de-escalation in tensions between Russia and Ukraine cooled investors’ fears about an imminent invasion.
The capital’s premier FTSE 100 index closed 1.03 per cent higher at 7,608.92 points, while the domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, added 1.09 per cent to finish at 21,852.51 points.
Shares that took a beating on Monday as concern about a possible conflict in eastern Europe intensified rebounded sharply yesterday.
Miner Evraz, which has operations in Ukraine and Russia, was the best performer on the FTSE 100 in the morning, before finishing 4.79 per cent higher. A demerger did drive most of Evraz’s share price drop yesterday.
Airlines recovered most of their losses, with the likes of British Airways owner IAG and travel operator Tui both climbing more than four per cent.
Wizz Air was the second best stock on the FTSE 250, surging 5.15 per cent.
An apparent thawing in tensions appeared yesterday as reports of Russia pulling some of its troops back from the Ukraine border emerged.
Analysts pointed to the choppy ride stock markets have been on this year.
“It has been a rough ride on financial markets so far this year. Driven by more hawkish central banks and geo- political tensions, both equity and bond markets have suffered and volatility has spiked,” Michael Strobaek, global chief investment officer at Credit Suisse, said.