Cooling fears over a potential slowdown in the Chinese economy boosted London’s top indexes today.
The capital’s premier FTSE 100 index climbed 1.62 per cent to 7,291.68 points, while the domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, soared over three per cent to reach 20,905.54 points.
Renewed lockdowns that have closed the key manufacturing and technology hub Shenzhen have sent Chinese and Hong Kong tumbling over the past couple of days.
Fears over Western countries hitting Beijing with sanctions if it continues to maintain a close relationship with Moscow have also soured market sentiment.
Chinese officials on Tuesday said they intend to implement market supporting policies, easing concerns over a regulatory crackdown.
Hong Kong’s Hang Seng rose over nine per cent in overnight trading on the news.
Russ Mould, investment director at AJ Bell, said: “The speed at which Beijing has responded to this week’s sell-off would suggest it doesn’t want to let things drift out of control.”
“Its key goal is common prosperity and stock markets matter because a lot of Chinese retail investors have money in equities, so their wealth is at stake if shares are plummeting in value,” he added.
Positive sentiment extended into the City.
Financials were among the best performing sectors on the FTSE 100, with the Scottish Mortgage Investment Trust, which has a large stake in US tech firms, the biggest riser, climbing nearly 10 per cent.
Wealth manager St. James’s Place rose 6.76 per cent.