London’s FTSE 100 jumps amid receding recession jitters
Recession fears among investors eased today ahead of a bumper week of economic data.
London’s premier FTSE 100 index jumped 0.9 per cent to 7,223.24 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed 0.96 per cent to over 19,000 for the first time since the end of June.
Investors’ concerns about the world economy being plunged into release by historically high inflation have ebbed and flowed over the past few months, sending markets whipsawing.
Traders are worried consumers will cut back spending in response to their finances being squeezed by higher prices and central banks accelerating rate hikes to tame inflation.
New inflation figures are out tomorrow, while fresh consumer confidence data is released on Friday.
Markets also shrugged off bets that the UK economy could be hit by record temperatures forcing consumers to stay at home.
“The overall impact on the UK economy from the heat is likely to be minor, given the normality for most office workers to now work from home for part of their weekly routines,” Walid Koudmani, chief market analyst at financial brokerage XTB, said.
Industrial giants were the biggest risers on the FTSE 100, bounced by a surge in oil prices caused by lingering jitters over supply security.
BP and Shell, who combined represent a huge share of the premier index, climbed over 2.5 per cent apiece.
Miners Antofagasta, Anglo American and Glencore all jumped more than 3.15 per cent.
The pound showed signs of life, strengthening over one per cent against the dollar to buy $1.1972.
Sterling has slid against the greenback in recent months due to investors piling into dollar-denominated assets to capitalise on the US Federal Reserve raising borrowing costs rapidly.