London’s top indexes snapped back yesterday after booking heavy losses due to fears over the economic fallout of the Russia-Ukraine war sending investors fleeing.
The capital’s premier FTSE 100 index soared 2.79 per cent to above 7,000 points, while the domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, skyrocketed 4.43 per cent to 20,069.20 points.
Global markets have whipsawed since the Kremlin sent troops into Ukraine, making it difficult for investors to judge which positions to take up.
Soaring energy prices driven by concerns over the security of oil and gas supplies as a result of the conflict has driven wild swings in the City.
However, oil and gas prices retreated yesterday, eases anxiety over Western economies headed for a period of stagflation.
Analysts said uncertainty about the severity of the impact on the global economy from the Russia-Ukraine war is exerting a heavy influence over markets.
“At this stage of the conflict, visibility is low and many scenarios are possible. It is still too early to know how much European and global growth and inflation will be affected,” Benjamin Melman, chief investment officer at Edmond de Rothschild, said.
Russian miners, Evraz and Polymetal International, each soon to be booted out of the FTSE 100, soared to the top of the biggest risers table again.
The former gained nearly 20 per cent, while the latter added a shade under 70 per cent.
The pound gained ground on the greenback, strengthening 0.44 per cent to buy $1.3161.
European markets joined in on the action, with Germany’s Dax 30 soaring nearly eight per cent.