Investors dismissed concerns over inflationary pressures firming in the UK economy and focused on a string of positive company earnings, lifting London’s indexes today.
The capital’s premier FTSE 100 index climbed 0.72 per cent to 7,518.35 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, added 0.71 per cent to reach 20,065.59 points.
A string of upbeat results this morning boosted market sentiment and eased jitters over the cost of living spiralling out of control in the UK.
Tobacco giant Imperial Brands posted a less severe hit to its bottom line from pulling out of Russia.
Its shares were the top performer on the FTSE 100, closing 7.88 per cent higher, despite announcing sales had slowed.
Real estate giant Land Securities swung back to profit, dampening gloomy predictions over the end of the office after the pandemic and pushing its shares into positive territory today.
“Reports of the demise of office working may have been premature judging by a return to profit for Land Securities in the 12 months to 31 March. Astonishingly in central London the company is seeing record leasing levels,” Russ Mould, investment director at AJ Bell, said.
The positive day came despite fresh jobs figures published by the Office for National Statistics revealing wage pressures are persisting amid an extremely tight labour market.
The Bank of England will look to tame labour market pressure by sending rates to over two per cent by the start of next year, markets think.
Those expectations helped boost the pound over one per cent against the dollar.