Iseq opens slightly higher and FTSE 100 up 56 points as global markets bounce back
The Iseq Index opened slightly higher (0.17pc) this morning as the rebound in stock prices spread to Europe.
London's premier index has bounced back from a brutal sell-off that wiped trillions of pounds off global markets in response to fears that rising inflation could spark interest rate hikes.
The FTSE 100 Index was up 56.61 points to 7,202.73 shortly after the market opened, breaking its losing streak and helping it recover from a plunge on Tuesday when blue-chip stocks saw nearly £50 billion lopped off their value.
Indexes across Europe and Asia were also recovering, with Germany's Dax up 0.3% and the Cac 40 in France lifting by 0.4%.
While Tokyo's Nikkei 225 Day pushed 0.2% higher, the Hang Seng Index in Hong Kong remained down by 0.9%.
Markets were taking their cues from across the Atlantic after Wall Street swung back into the black in overnight trading, with the Dow Jones Industrial Average and the S&P 500 closing up 2.3% and 1.7% respectively.
The global equity sell-off had been building since last Friday when traders became spooked by the prospect of tighter monetary policy after the US posted strong average earnings data.
AJ Bell investment director Russ Mould said: "After a period of mill pond-like calm, volatility surged back into global stock markets over the past few trading days, to test the nerves of investors for the first time since 2015.
"The fact that the global sell-off has halted, at least for now, suggests investors have quite sensibly not hit the panic button yet, but they will be on high alert and will understandably be monitoring the situation very carefully."
Scottish Mortgage Investment Trust emerged as the biggest riser on the FTSE 100 after taking a hefty hit in the previous session.
Shares were up around 4% or 17.2p to 439.4p, with Old Mutual following closely behind, rising 6.2p to 228.9p.
However, a string of stocks were still languishing in the red as the top-flight failed to reach heights seen before Tuesday's crash.
Precious metals miner Randgold Resources sank more than 1%, down 98p to 6,360p, giving up gains from the previous session when traders sought out safe havens.
Away from the top tier, the FTSE 250 Index rose 200.45 points to 19,467.86.
Housebuilder Redrow was enjoying a strong session after higher selling prices and a jump in completions helped revenues and profits surge.
The group chalked up a 26% rise in half-year pre-tax profits to a record £176 million, while revenues climbed by a fifth to £890 million over the period.
The stellar performance was underpinned by a 14% rise in legal completions to 2,811, with the average selling price lifting 9% to £330,000.
Shares were up 20p to 613.5p.
On the currency markets, the pound was marginally lower against the US dollar and the euro at 1.394 and 1.126 respectively.
In oil, the price of Brent crude was also in the red, dropping 0.2% to 67.06 US dollars a barrel.