Global stocks recover after debt ceiling bill passed in US
The FTSE 100 saw a muted recovery, closing 44.13 points higher, or 0.59%, to 7,490.27.
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Your support makes all the difference.Global shares clawed back gains on Thursday after the long-awaited US debt ceiling saga neared a conclusion.
Members of the House of Representatives, which is Republican controlled, passed a new bill which suspends the ceiling, and it is now heading to the Senate for final approval.
Global sentiment had been rocked over fears the nation would default on its own debt and not be able to pay any bills, with an economic impact that would be felt globally.
European markets edged higher and US investors were feeling more positive after sustaining significant losses earlier in the week, but it was a somewhat muted reaction to the debt ceiling breakthrough.
Mining stocks helped lift the FTSE 100 higher after a jump in oil and copper prices, but it still lagged below the 7,500 mark.
The blue-chip index closed 44.13 points higher, or 0.59%, to 7,490.27.
European markets have undergone a slow start to the month after yesterday’s sell-off, as attention switches away from the US debt ceiling and towards the broader economic outlook, and increasing evidence that inflation is slowing sharply
Michael Hewson, chief market analyst at CMC Markets UK, said: “European markets have undergone a slow start to the month after yesterday’s sell-off, as attention switches away from the US debt ceiling and towards the broader economic outlook, and increasing evidence that inflation is slowing sharply.”
It followed new official figures showing that Europe’s inflation rate eased to 6.1% in May, down from 7% in April, for the 20 countries that use the euro currency.
European investors appeared upbeat, with the German Dax closing 1.2% higher and France’s Cac up 0.57%.
Across the pond, the S&P 500 was 0.75% higher and Dow Jones up 0.5% by the time European markets closed.
The pound was up 0.2% against the euro to 1.166, and up 0.8% against the US dollar to 1.253.
Brent crude oil surged by 2.75% to 74.59 US dollars per barrel.
In company news, investors were disappointed after bootmaker Dr Martens said its profits shrank by more than a quarter after dealing with issues at its US warehouse.
The stock issues overshadowed the retailer hailing reaching £1 billion in revenue for the first time. Its share price fell by nearly 12% on Thursday.
Online car marketplace Auto Trader saw its share price slide after reporting lower annual earnings after a year marred by ongoing new vehicle shortages.
The group revenues jumped on the back of soaring demand, but resulting fewer cars listed on the site. Its share price dipped by 3.4%.
Ocado Group also sank towards the bottom of the FTSE 100 after the company dodged relegation from the top index.
It was expected to be kicked to the lower ranks of the FTSE 250 in the annual reshuffle, but instead property developer British Land faced the boot. Ocado’s share price was 4.5% lower at close.
The biggest risers on the FTSE 100 were Fresnillo, up 29.2p to 677.2p, B&M European Value Retail, up 19.6p to 529.4p, Melrose Industries, up 16.8p to 488.4p, Anglo American, up 76p to 2,299p, and Prudential, up 35p to 1,091p.
The biggest fallers on the FTSE 100 were National Grid, down 50.5p to 1,055p, Ocado Group, down 16.6p to 352.4p, Auto Trader, down 21.4p to 608.6, Severn Trent, down 66p to 2,707p, and London Stock Exchange Group, down 92p to 8,458p.