FTSE 100 lifted after Chinese stimulus package boosts global markets

London’s premier index ticked up to end the day 0.28% higher, with most of its early gains cancelled out by the close.

The FTSE 100 rose in early trading after a Chinese economic stimulus package (Nicholas. T. Ansell/PA) (PA Wire)

The FTSE 100 nudged upwards on Tuesday after investors were buoyed by economic stimulus measures by China early in the day.

London’s premier index rose 23.05 points, or 0.28%, to end the day at 8282.76, with most of its early gains cancelled out by the close.

AJ Bell head of financial analysis Danni Hewson said: “An early boost to investor sentiment from China’s economic stimulus fizzled out as the day progressed, although mining stocks continued their run of good form.

“There’s still a lot of volatility around as investors second guess last week’s jumbo Fed move and wonder if today’s weak US consumer confidence data heralds a gloomy fourth quarter.

“Coming off the back of another slew of record-breaking highs investors would do well not to read too much into today’s slight cooldown, although there is plenty of other data which might upset the apple cart later in the week.

“London markets have been rather more subdued but there have been some decent individual performances with Raspberry Pi’s first results since IPO proving that UK tech stocks do have legs.”

In European markets, Frankfurt’s Dax index rose 0.75%, while the Cac 40 in Paris had closed up 1.28%.

Stateside, shortly after markets had closed in Europe the S&P 500 had gained 0.23%, while the Dow Jones was 0.12% higher.

On currency markets the pound had gained 0.21% against the dollar at 1.3375 and had dropped 0.15% against the euro at 1.1996.

In company news, budget computer firm Raspberry Pi revealed that profits were stronger than expected in its first update since floating on the London stock market earlier this year.

The stock market debutante told shareholders that revenues jumped by 61% to 144 million US dollars (£107.9 million) over the six months to June 30, compared with the same period a year earlier.

Shares finished 6.61% up for the day.

Elsewhere, retailer Card Factory revealed tumbling profits after seeing costs soar due to higher staff wages after this year’s National Living Wage hike.

The chain, which has more than 1,070 stores across the UK and Ireland, reported a 43% drop in pre-tax profits to £14 million for the six months to July 31.

It said the hit came after its wage bill was sent surging by April’s near 10% increase in the National Living Wage.

Shares plunged 21.12% on Tuesday.

Brent crude oil futures were up 1.475% to 74.99 US dollars as markets were closing in London.

The biggest risers on the FTSE 100 were Anglo American, up 141p to 2263.5p, Antofagasta, up 115p to 1940p, Rio Tinto, up 219.5p to 5049p, Prudential, up 26.2p to 664.8p, and Glencore, up 15p to 399.85p.

The biggest fallers on the FTSE 100 were Smiths Group, down 95p to 1725p, Vistry, down 25p to 1327p, CocaCola HBC, down 40p to 2688p, Howden Joinery, down 13.5p to 933.5p, and Segro, down 11.6p to 871p.