London’s premier index has bounced back from a brutal sell-off that wiped trillions of pounds off global markets in response to fears that rising inflation could spark interest rate hikes.
The FTSE 100 Index was up 56.61 points to 7,202.73 shortly after the market opened, breaking its losing streak and helping it recover from a plunge on Tuesday when blue-chip stocks saw nearly £50 billion lopped off their value.
Indexes across Europe and Asia were also recovering, with Germany’s Dax up 0.3% and the Cac 40 in France lifting by 0.4%.
While Tokyo’s Nikkei 225 Day pushed 0.2% higher, the Hang Seng Index in Hong Kong remained down by 0.9%.
Markets were taking their cues from across the Atlantic after Wall Street swung back into the black in overnight trading, with the Dow Jones Industrial Average and the S&P 500 closing up 2.3% and 1.7% respectively.
The global equity sell-off had been building since last Friday when traders became spooked by the prospect of tighter monetary policy after the US posted strong average earnings data.
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