Market report

Wall St follows London market to close higher

10pm: Markets rally

Traders on Wall St (pic: NYSE)

Global stock markets rallied after recent slumps to end the week on a high and provide a welcome relief for pension funds and savers.

Wall Street mirrored big gains in Europe in the hope that central banks may ease back on aggressive interest rate rises in order to avoid a deep recession.

The Dow Jones Industrial Average rallied more than 800 points, rebounding off the lows of the bear market last week and capping its first weekly advance since May.

The Dow rose 2.68%, to 31,500.68, with gains accelerating in the final hour of trading. The S&P 500 was 3.06% higher, while the tech-focused Nasdaq Composite advanced 3.34%.

It means the S&P 500 is up nearly 6.5% for the week, while the Nasdaq Composite gained 7.5%. The Dow is 5.4% higher.

5pm: FTSE 100 makes strong gain

Stocks in London roared back, helped by a bullish opening in New York. The FTSE 100 index closed up 188.36 points, or 2.7%, at 7,208.81. 

Ultra Electronics advanced 12%, the best mid-cap performer after its takeover by Cobham moved a step closer to completion.

The UK government said it was “minded to accept” remedies to address national security concerns raised by the £2.6 billion acquisition of the defence specialist.

Cruise ship operator Carnival jumped 8.7% after reporting a narrowed loss in the second quarter.

Retailers had a mixed session on the back of another fall in sales volumes. Ted Baker lost 3.4%, Superdry fell 3.3%, though Next gained 2.1% and JD Sports rose 4.3%. 

Russ Mould, investment director at AJ Bell, said: “As we approach the halfway point for 2022, investors continue to cross their fingers that markets will have a better second-half than the first six months of the year. 

“Media group Future, asset manager Liontrust, aviation expert Wizz Air, tech investor Scottish Mortgage and sausage rolls seller Greggs have all had a terrible time on the markets in 2022, and it may take either some outstanding news, a shift in central bank monetary policy or a brighter economic outlook for them to win back investors’ favour.

Barclays fancies its chances as a bigger player in the residential mortgage market. The timing might seem a bit odd given cracks appearing in the property market. However, Barclays is clearly taking a long-term view and its purchase of Kensington Mortgage together with a book of UK home loans is a logical strategic move.

“UK takeovers continue to come thick and fast and today’s bid news comes with a twist. Normally a bidder would offer a good 20% to 30% premium to the market price, yet the opposite has happened with oil services group Lamprell.

“The company is in a very weak financial position and an approach from major shareholder Blofeld is more of a rescue package than a recognition of the company’s future potential.

“Lamprell says the proposal is at a very significant discount to last night’s market price and it desperately needs financial help in the interim. It could be one of those situations where something is better than nothing for shareholders, given the clock is ticking on the company’s survival.”


7.30am: Retail sales fall

Retail sales volumes fell by 0.5% in May as consumers cut back on their food shop.

New figures from the Office for National Statistics are a fresh indication of the impact of surging inflation.

Economists polled by Reuters had expected a 0.7% monthly fall in retail sales in May.

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