FTSE 100 reverses early losses on strong Wall Street gains
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London markets whipsawed today as investors’ concerns about a bigger Bank of England rate rise were tamed by strong gains on Wall Street.
The capital’s premier FTSE 100 index surged 1.01 per cent to 7,296.28 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed 1.41 per cent to finish over 19,000 points.
Both indexes had notched tepid losses during opening exchanges after new jobs figures suggested the Bank will launch a 50 basis point rate rise, something it has not done since it was made independent 25 years ago.
Vacancies remain near record-highs, while unemployment dropped to 3.8 per cent. Regular pay accounting for inflation fell at the fastest pace since records began in 2001.
“With the rate of wage growth, excluding bonuses, edging up again, the trend is likely to add to expectations that the Bank of England won’t hold off raising interest rates,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said.
Wall Street’s main S&P 500, Dow Jones and Nasdaq indexes opened higher, sparking a big jump on both the FTSE 100 and 250.
GSK’s consumer pharmaceutical FTSE 100-listed firm Haleon continued to disappoint after notching bad losses on its first day of trading yesterday. It finished as the index’s second biggest faller today.
The pound was boosted by mounting expectations for a bigger Bank rate rise, strengthening 0.4 per cent against the dollar to buy over $1.2.