Global stock markets rose sharply yesterday as investors grew more hopeful about a breakthrough in ceasefire talks between Russian and Ukraine.
A positive session in Asia, buoyed by plans for extra measures to boost the Chinese economy, helped markets to start the day on a positive footing that continued into European trading.
Liu He, China’s vice-premier, said that Beijing would take measures to “boost the economy in the first quarter”, as well as to introduce “policies that are favourable to the market”, although it is unclear what those measures will be.
By the close of trading in London, the FTSE 100 had risen by 115.98 points, or 1.6 per cent, to 7,291.68, its highest close in two weeks but still down 2.2 per cent since the start of the month. The more domestically focused FTSE 250 rose 647.88 points, or 3.2 per cent, to 20,905.54.
Germany’s Dax share index was up 3.8 per cent and the CAC40 in Paris closed up 3.7 per cent. The pan-European Stoxx Europe 600 index rose by 3.1 per cent.
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Beyond the equity markets, the oil price endured another volatile session as traders reacted to the peace talks and a surprising increase in American inventories. Brent crude, the international benchmark price, swung between $97.55 and $103.70 a barrel before being down 1.9 per cent at $98.02 in New York last night.
Gold, a popular safe haven for investors in times of turmoil, fell for the fourth session in a row to a two-week low. It was down 1.1 per cent at $1,908 an ounce last night, 6.5 per cent lower than its 52-week high of $2,040.10 that was reached on March 8.
On the currency markets, the pound rose by as much as 0.5 per cent against the dollar at one point to change hands above $1.3100 for the first time since March 11, but later in the day those gains were pared back to 0.1 per cent.
