The London stock market clawed back some of its losses yesterday following a £100billion rout.
With European and US shares also rising, the FTSE 100 climbed 0.8 per cent, or 83.52 points higher, to 10,567.65 having fallen nearly 4 per cent in the previous two sessions.
That wiped £102billion off the value of Britain’s biggest firms in just two days as war in the Middle East stoked fears over inflation and shocked global financial centres.
Oil prices remained above $80 a barrel, having surged past $85 for the first time since July 2024.
Gas prices were also elevated.
The mood was lifted by reports that Iran requested talks with the US, though this was later denied by Tehran, leaving investors braced for further turmoil.
Rollercoaster: The FTSE 100 climbed 0.8% or 83.52 points higher to 10,567.65 having fallen nearly 4.5% in the previous two sessions
‘The market is cautiously optimistic around the conflict. Hopefully, it will be a short endeavour,’ said Ben Sullivan, investment officer at AE Wealth Management.
The DAX rose 1.7 per cent in Frankfurt and the CAC 40 was up 0.8 per cent in Paris while Wall Street also made gains.
Susannah Streeter, chief investment strategist at Wealth Club, said: ‘Sentiment remains highly wary on financial markets as investors assess the latest developments in the Middle East and brace for fresh turbulence.’
Neil Wilson, strategist at Saxo, added: ‘Despite significant losses for European and Asian equity markets it seems too soon to be confident the worst is behind us.
‘It’s hard to see a real recovery take hold until the shooting stops.’
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