Following its most substantial fall in two months, the FTSE 100 is up by 0.54% to 6,897.04 on Wednesday, as the index has staged a mini-resurgence.
“Investors will be relieved to see the FTSE 100 dust itself off and get fight back on Wednesday as it looks to regain some of the big losses,” says AJ Bell investment director Russ Mould.
The move higher comes despite one of the market’s big fears – inflation – ticking up in the UK.
“It probably helps that the CPI measure came in short of expectations and it is also worth remembering that a modest climb in prices is a sign of the economy getting back on its feet,” Mould said.
“The likely trajectory of inflation in the longer term means this issue is not going to go away and will remain something investors need to consider even if a short-term spike linked to pent-up demand in lockdown diminishes,” he added.
In London shares linked to the reopening, including airlines and other travel-related businesses, managed a bit of a rebound. “We will almost certainly see more swings in sentiment as we move from spring into summer,” said Mould.
FTSE 100 Top Movers
Making up the most ground on Wednesday is IAG (3.41%), Hikma Pharmaceuticals (2.65%) and Next (2.54%).
While at the bottom end of the FTSE 100 less than two hours into the day’s trading is Just Eat (-4.48%), Bunzl (-2.88%) and Weir Group (-2.28%).
The mining giant said it was expecting to finish the year strongly as a result.
The FTSE 100 company said its annual production guidance for iron ore and petroleum was unchanged, while it reduced guidance for metallurgical coal and energy coal, on account of wet weather conditions.
Antofagasta confirmed on Wednesday that its production and costs were aligned with its expectations in Q1 although it remains wary of the consequences of another lockdown in Chile.
The major mining company announced its copper production was on schedule at 183,000 tonnes, 5.7% lower than the year before, and 5% down on Q4. The results were largely down to reduced grades at its Los Pelambres mine.