Despite the potential for a wobble being brought on by inflation figures and the sluggish Dow Jones open, the FTSE crossed the finish line of the Wednesday session at the head of the pack.
Falling just short of a one-week high, the FTSE finished the session at 7450, following a 1.2% bounce.
The index’s success was partially led by a Bloomberg report, which said that China would help airlines suffering as a result of the Coronavirus. It was also boosted by the inflation figures, which allowed Sterling a short rally before the currency fell and turbocharged the FTSE’s afternoon rally.
Speaking on the afternoon’s movements in global equities, Spreadex Financial Analyst Connor Campbell stated,
“Though the Dow Jones was reticent to join in, the European markets took back yesterday’s losses and then some on Wednesday.”
“The FTSE was well ahead of its peers as the session went on, climbing to a near one-week peak of 7450 – remember at one point on Monday it touched 7350 – thanks to a 1.2% increase. Not only did the UK index benefit from a Bloomberg report claiming Beijing will help out airlines struck by the coronavirus, further adding to the idea that China is set to try and money its way of out of a crisis, but also the pound’s afternoon downturn.”
“Sterling quickly giving up its post-inflation reading gains – the latest UK CPI number came in at 1.8% against the 1.6% forecast – to fall 0.4% and 0.3% against the dollar and euro respectively. This as the currency perhaps expressed its anxieties over the UK-EU trade situation.”
“Elsewhere the DAX and CAC both shot up by 0.8%. That left the German index only a handful of points away from a record high close, and its French cousin back above 6100 for the first time in a week.”
“In comparison the Dow wasn’t feeling quite as up for it. The US index added a paltry 0.3%, just about pushing it across 29300, but keeping it away from its 29500-tickling peak.”