European markets shake off hawkish comments from central banks
The FTSE 100 moved 0.52%, or 39.03 points, higher to finish at 7,500.49.
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Your support makes all the difference.London stocks shrugged off concerns about further interest rate hikes and a softer performance on Wall Street.
Gains by software firm Sage and financial stocks helped to buoy the FTSE to a second positive trading session.
The FTSE 100 moved 0.52%, or 39.03 points, higher to finish at 7,500.49.
It came despite hawkish comments from central bank bosses at a European Central Bank forum in Sintra, Portugal, which saw Federal Reserve chair Jerome Powell admit that more hikes were coming but that the US could avert a downturn.
The Bank of England’s Andrew Bailey, meanwhile, said the UK central bank had to make a “strong move” last week in the face of concerns regarding persistent inflation.
The other major European markets remained positive in the face of the economic backdrop.
Germany’s Dax index increased by 0.64% while the Cac 40 closed up 0.98%.
Michael Hewson, chief market analyst at CMC Markets UK, said: “Having stopped the rot yesterday, ending a six-day losing streak, European markets have pushed on today with another positive session, although basic resources have underperformed, due to lower copper and oil prices.”
Stateside, the main markets opening marginally lower after Tuesday’s gains gave way to modest profit-taking from investors, while tech shares were also broadly on the back foot.
Meanwhile, sterling slid against the strong dollar, as US traders prepared for further interest rate hikes.
The pound was down 0.83% to 1.264 US dollars and had decreased 0.39% to 1.158 euros at market close in London.
In company news, Ocado shares drifted again on Wednesday after the volatile stock was impacted by increased speculation that Amazon would not table a takeover bid for the company.
The online retail firm had been buoyed by reports late last week that Amazon could seek to buy the business, but shares have slipped back in recent sessions as scepticism has grown among analysts and traders.
Shares were 28p lower at 529.8p at the close of trading.
Revolution Beauty shares surged after they were restored in London following a nine-month suspension.
It came despite the spat between the make-up business and fashion firm Boohoo intensifying further after Revolution defied a shareholder vote against bosses from Tuesday’s annual general meeting.
Revolution shares climbed 5.5p higher to 24.5p.
Handbag maker Mulberry dropped in value in the face of a profits slump after higher costs impacted the fashion business.
Pre-tax profits tumbled to £13.2 million in the year to April 1, down from £21.3 million the previous year, the company told investors. Shares closed 22p lower at 230p as a result.
The price of oil edged back due to the stronger US dollar and concerns over weakening demand.
A barrel of Brent crude fell by 0.18% to 73.57 US dollars at the time markets were closing in London.
The biggest risers on the FTSE 100 were Sage, up 44.6p to 918p, Scottish Mortgage Investment Trust, up 24.8p to 663.6p, Pershing Square, up 78p to 2,802p, Ashtead, up 144p to 5,484p, and CRH, up 112p to 4,315p.
The biggest fallers on the FTSE 100 were Ocado, down 28p to 529.8p, Admiral Group, down 71p to 2,067p, Anglo American, down 42.5p to 2,237.5p, Reckitt, down 96p to 5,920p, and Antofagasta, down 23.5p to 1,459.5p.