London markets make gains again as banking fears calm further
London’s top index moved 1.07%, or 80.02 points, higher to finish at 7,564.27.
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Your support makes all the difference.The continued recovery in sentiment surrounding the banking sector helped London stocks finish firmly in the green on Wednesday.
The FTSE 100 benefited from positive trading for housebuilder, commercial property owners and finance shares during the session.
It meant the index was firmly higher despite a slump in value for high street bellwether Next due to a more tentative profit outlook.
A rebound in UK mortgage approvals in February is helping to lift UK house builders with Persimmon, Taylor Wimpey and Barratt Developments edging higher
London’s top index moved 1.07%, or 80.02 points, higher to finish at 7,564.27, in its third consecutive day of gains.
Across the Channel, the story was broadly similar as shares in Deutsche Bank shares continued their steady recovery.
The Dax rose by 1.23% and the French Cac 40 increased by 1.39% at the close.
Michael Hewson, chief market analyst at CMC Markets UK, said: “European markets have continued to stabilise as confidence continues to return after the upheaval of the last two weeks, with the Dax pushing up to its best levels in two weeks, led by a continued recovery in financials while real estate is starting to see some buying interest creep back in.
“A rebound in UK mortgage approvals in February is helping to lift UK house builders with Persimmon, Taylor Wimpey and Barratt Developments edging higher.”
In the US, the markets have followed the positive tone with the tech-heavy Nasdaq leading the way.
Meanwhile, sterling edged lower during a broadly cautious session.
The pound was down 0.13% to 1.231 US dollars and fell by 0.02% to 1.137 euros at market close in London.
In company news, Next was the heaviest faller on the FTSE 100 as investors in the fashion chain were left unimpressed by guidance that predicted a drop in profits to £795 million due to soaring wage and utility bills, with sales expected to be 1.5% lower.
It came as Next said sales in the first eight weeks of the new financial year were down 2% and forecast a drop overall in the first half of 3% as it compares with a boom in trading a year ago.
Shares in the retail business were 292.0p lower at 6,434p.
Ocado swung higher as investor sentiment recovered quickly following Tuesday’s trading update, where the online retail business highlighted ongoing “challenging” trading.
Ocado improved by 34p to 478p by the end of the session on Wednesday.
Games developer TinyBuild closed 4.5p higher at 50p after it said pre-tax profits leapt by 27% in 2022 as it also committed to pumping investment into new releases this year.
The price of oil had a modest increase to take it to its highest for two weeks amid speculation over tighter supplies after a bigger-than-expected fall in inventories.
Brent crude oil increased by 0.59% to 79.92 US dollars (£64.87) per barrel when the London markets closed.
The biggest risers on the FTSE 100 were Ocado, up 34p to 478p, Prudential, up 44.5p to 1,089p, M&G, up 6.6p to 185.95p, Barclays, up 4.84p to 142.02p, and Land Securities, up 19.4p to 596.6p.
The biggest fallers on the FTSE 100 were Next, down 292.0p to 6,434p, Smith & Nephew, down 12.5p to 1,120.5p, Pershing Square, down 15.0p to 2,750p, Pearson, down 4.2p to 820.8p, and AB Foods, down 8.5p to 1,943.5p.