London’s FTSE 100 climbed higher on Tuesday, helped by a recovery in property stocks and oil majors, while a record UK factory activity data strengthened the hopes of economic recovery among investors.
The blue-chip index closed 28 points higher, or 0.4 per cent, at 7,090 on Tuesday. While the domestically focused FTSE 250 closed up 0.8 per cent.
British Land and Land Securities were the top gainers on the benchmark, up by 4.4 and 3.1 per cent respectively, as both received upgrades from JP Morgan in hopes of recovery as the UK reopens.
Data released on Tuesday showed that the UK manufacturing output volumes in the three months to June grew at the fastest pace on record since 1975, according to the latest monthly CBI Industrial Trends Survey.
Hugh Shields, financial trader at Spreadex, said FTSE’s strong performance could get better in the coming sessions. “With the Bank of England’s meeting minutes to come out later this week too, there is a chance that this strong performance could get even better,” he said.
Across the Atlantic, Wall Street also managed to push higher as investors shed worries over Federal Reserve interest rate hikes. The S&P 500 ended close to a record high, up by 0.5 per cent, while the Dow Jones Industrial Average also added 0.2 per cent. The Nasdaq Composite touched a new intraday record, climbing 0.8 per cent.
On Wednesday, Asia-Pacific opened mixed despite overnight gains stateside. Shanghai composite slipped in early trade but recovered in the later hours. Hong Kong’s Hang Seng index surged 1.4 per cent. The Nikkei 225 advanced in early hours but sat below the flatline later.
Indian equity indices, Sensex and Nifty opened higher but soon fell down dragged by financials and IT stocks. Both indices remain near the flatline.