Lower stock exchanges rallied on Tuesday amid a flurry of optimism that propelled the pound to a two-week high.
In London, the FTSE 100 climbed above 7,000 to end with a gain of 178 points at 7,086.
The 2.6% increase was the best performance for the index since June, but it is still a far cry from recent highs after the government’s mini-budget sell-off.
The pound continued to rebound from its recent malaise, reaching a high of around $1.145 that day. It was up more than 1% on the day shortly after the market closed in London.
“The pound has continued its upward move as the gilt market continues to cool, so concerns are easing,” said Joshua Mahoney, senior market analyst at online trading platform IG.
“While markets have reacted positively to the Chancellor’s 45p tax rate U-turn, today (Quasi) Quarteng has once again seen the flip-flop returning to its original stance that the OBR (Budget Responsibility Office) forecast will come only in November. At the end of.
“While the pound has gained ground against the dollar, this is largely a reflection of a broader improvement in risk sentiment.”
The FTSE rose on the day, but it did poorly compared to its European neighbors.
In France, the CAC 40 closed up 4.2% while Germany’s DAX index rose 3.8%.
The S&P 500 in New York was trading up 2.8% and the Dow Jones was up 2.6% shortly after the market closed in Europe.
Shares of Greggs rose more than a 10th on Tuesday as trading showed sales were on the rise as customers looked for cheap lunches.
The business said sales grew 15% over the past three months.
“I think people just want to look for good value,” said chief executive Roisin Curry.
“So if our customers are concerned about the cost of living, and they’re traveling, at work or out with friends and they’re hungry, they’re coming to us for a good deal.”
Greg’s has raised the price of its sausage rolls for the third time this year to £1.15 – up from £1 at the end of 2021.
The biggest risers on the FTSE 100 were Flutter Entertainment, up 896p to 10,590p, Ocado, up 41.3p to 507p, Intermediate Capital Group, up 83.7p to 1,083.5p, IAG, up 7.4p to 101.06p, and Hargreaves Lansdown, up 63p to 922.6p.
The biggest drops were Centrica, down 0.66p to 71.4p, SSE, down 13p to 1,560p, Aveva, down 12p to 3,167p, British Land, down 1p to 354.5p, and Segro, down 3p to 754p.
Credit: www.standard.co.uk /