London closes higher as global markets calm after banking woes
The FTSE 100 moved 0.9%, or 66.32 points, higher to finish at 7,471.77.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Stocks recovered some ground on Monday as fears eased slightly over uncertainty in the banking sector.
Barclays was among London’s top performers as the FTSE 100 swung back after a weak end to last week.
It came as traders welcomed a takeover of Silicon Valley Bank’s US loans and deposits.
The FTSE 100 moved 0.9%, or 66.32 points, higher to finish at 7,471.77.
Michael Hewson, chief market analyst at CMC Markets UK, said: “As a new week gets under way, we’ve seen a modest easing in the banking sector angst of the last few days, with a much better tone after the sell-off at the end of last week.
“Most sectors of the markets have seen a modest rebound, helped by events on the other side of the Atlantic as reports emerge that Citizens Bank in the US is acquiring Silicon Valley Bank’s loans and deposits.
“The rebound in yields alone suggests a calmer tone is prevailing in the short term, however, sentiment is still likely to remain on the cautious side.”
As a result, Germany’s Dax market had a solid session on the back of gains by Deutsche Bank, although it dropped back slightly from intra-day highs.
The Dax rose by 1.15%, and the French Cac 40 increased by 0.89% at the close.
Stateside, the positive mood continued on the opening bell, with the Dow Jones firmly higher.
Sterling had a strong session after better-than-expected data from the CBI’s March retail sector report, showing that sales were at their strongest levels since August.
The pound was up 0.36% to 1.227 US dollars, and rose by 0.17% to 1.138 euros at market close in London.
In company news, Mexican restaurant chain Tortilla wrapped up a flat session despite swinging to a loss last year as it came under pressure from “unprecedented” food and energy costs.
Revenues jumped by a fifth to a record £58 million in 2022 after it opened 18 new restaurants across the UK, but the company, which acquired rival Mexican chain Chilango last year, made a pre-tax loss of £600,000 over the year.
Shares in the company closed at 120p.
Lord Ashcroft’s listed publishing firm Merit Group saw shares jump after it said it had sold its London office lease at the Shard as part of efforts to cut costs.
The group, which was previously Dods Group, said it will save around £2.3 million over the remaining term and after paying for new premises and other costs.
Investors cheered the news, with shares up 3.5p to 30p as a result.
Property franchise business Belvoir rose by 8.5p to 174.5p after it revealed that revenues climbed 14% to £33.7 million as it saw growth in financial services.
The price of oil improved as it also benefitted from broader positivity across global markets.
Brent crude oil increased by 1.77% to 76.32 US dollars per barrel when the London markets closed.
The biggest risers in the FTSE 100 were 3i Group, up 67p at 1,609.5p, Ocado Group, up 12.4p at 451.6p, Barclays, up 3.46p at 137.36p, Burberry Group, up 50p at 2,393p, and BP, up 10.25p at 496.55p.
The biggest fallers were Fresnillo, down 11.2p at 721.4p, Smiths Group, down 25p at 1,685p, BT Group, down 0.75p at 139p, Segro, down 3.8p at 717.2p, and Diageo, down 16p at 3,583p.