US stocks rose during the open on Wednesday after investors were boosted by a string of strong company quarterly earnings.
The blue chip S&P 500 rose 0.48 per cent, lifted by gains in cyclical stocks.
The tech-heavy Nasdaq added 0.39 per cent, while the Dow Jones was up 0.69 per cent.
Yields on 10-year US Treasuries rose to 1.26 per cent as investors exited safe haven assets and piled into stocks and shares.
Retailers lift FTSE 100 above 7,000 as Next surges
Strong performances among retail stocks lifted London’s FTSE 100 above 7,000 on Wednesday.
The capital’s premier index rose 1.77 per cent to 7,002 during the afternoon session.
The gains were driven by a rally among retailers, with Next leading the charge after it upped its profit forecasts sharply.
The market was also buoyed by figures released this morning showing government borrowing eased over the last month indicating that the UK economy is on the path to recovery.
Russ Mould, investment director at AJ Bell, said: “Yesterday’s market rebound was welcome, but also raised questions as to whether it was a dead cat bounce. The fact markets have sustained positive momentum for a second day in a row is more encouraging.”
The domestically-focused mid cap FTSE 250 climbed 2.07 per cent, while AIM shares were up 1.47 on Wednesday afternoon.
The pound rallied 0.36 per cent against the greenback to buy $1.36.
Winners and losers
The day’s biggest winner by far was retailer Next, surging 8.36 per cent after the company raised its profit guidance for the year by an additional £30m to £750m.
Aerospace engineer Rolls Royce came second, climbing 7.7 per cent. British Airways parent company IAG came third, up 6.36 per cent.
Delivery company Royal Mail was the worst performer, dropping 2.83 per cent after it posted a poor set of results showing group revenue fell 12.5 per cent, while cybersecurity firm Avast lost 2.17 per cent.
Miner Polymetal International was down 2.07 per cent.
Around the world
Asian shares rebounded from a sharp selloff at the beginning of the week over night.
Japan’s Nikkei was up 0.58 per cent, while China’s CSI 300 added 0.69 per cent.
European shares posted a strong start to Wednesday – the Stoxx 600 was up 0.93 per cent.
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