Successful European bond auctions and strong corporate earnings in the US today helped London’s leading shares index recover some of yesterday’s heavy losses.
The FTSE 100 Index gained 43.9 points to 5,709.5 after Italy, Spain and Holland raised money from bond markets despite the recent escalation in fears over the eurozone debt crisis.
Although Spain and Italy’s borrowing costs rose, the successful auctions soothed investors’ nerves and encouraged bargain hunters to snap up cheap stock.
The Footsie’s biggest risers included Man Group up 4.5p at 97p, Aviva ahead 12.5p at 311.6p and International Consolidated Airlines Group up 5.9p at 168.5p.
Banks and financial firms recouped some of the losses seen yesterday, when they were heavily sold off amid the political uncertainty.
Lloyds Banking Group was up 3%, or 1p today at 30.4p, Barclays rose 6.5p to £2.11 and Royal Bank of Scotland was 0.2p higher at 23.3p.
Associated British Foods added 24p to £12.39 in the wake of half-year results.
Shares in oil giant Royal Dutch Shell were boosted after the oil giant agreed to buy East Africa-focused exploration firm Cove Energy for £1.1billion amid predictions that the region would become a major natural gas source. Shell was up 21p at 2200.5p, while Cove rose 5%, or 10p to £2.27.
The Footsie’s biggest fallers included Capita down 46.5p at 682.5p, ARM Holdings off 35p at 531.5p, British American Tobacco down 56.5p at £31.57 and Burberry off 19p at £14.07.
Housebuilder Redrow was at the top of the second flight, up 9p to £1.26 after founder Steve Morgan unveiled an £80million fundraising plan for the FTSE 250 Index-listed firm
Blighted by “weak and volatile” markets, Carpetright dealt a further blow to investors with the latest in a string of profit warnings. Shares were down another 9p to £5.98.
Steven McKay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted FirstGroup adding 3% to 195.2p, Hunting up 2% at £9.13 and Wood Group rising 1.6% to 744.75p.
Premier Oil lost 0.4% to 369.2p, Faroe Petroleum slipped 0.15% to 170.25p and Aberdeen Asset Management was 0.1% lower at 271.5p.