London’s blue chip stocks made a nervy start to the day despite a recovery in both US and Asian markets.
In Asia, stocks rose with the Shanghai Composite up 4.8% to 3,232, while Japan’s Nikkei 225 index was ahead 3% to 19,136.
The US ended the session in positive territory, with the Dow Jones Industrial Average up 2.3%, with the tech-heavy NASDAQ posting a 2.5% gain.
The consensus from the Jackson Hole gathering of bankers in Wyoming was contradictory so far as it related to the prospect of a US interest rate rise and based on the comments of the US Federal Reserve members.
Connor Campbell at spread betting firm Spreadex said that, whilst comments from Fed members Lockhart and Dudley this week appear to have kicked the rate-hike down the road, strong GDP figures combined with another solid jobless claims number, suggests the US might actually be ready for lift-off.
Angus Nicholson, analyst at IG, said: “There still does not seem to be the macro foundations for indices to fully recover from their corrections, as concerns over China and uncertainty over Fed rate hikes continue to linger.”
In the UK, the FTSE 100 was 13 points lower at 6,179 as it failed to capitalise on the gains made by markets overnight.
Trying to lead the way higher were oil stocks, after the oil price shot up 10% last night. Brent Crude jumped to a peak of US$48.44 and remained above US$47.
Royal Dutch Shell (LON:RSDB) climbed 1.66% to 1,687p while BG Group (LON:BG) rose 2.25% to 983p and BP (LON:BP) gained 1% to 354p.
Away from the index, Marshalls (LON:MSLH) saw pre-tax profits leap 48% in the first half of the year to £20.8mln from £14mln on the back of better margins.
The company said trading conditions continue to be positive in its key markets and shares rose 5.85%.
Meanwhile, Cinderella shoe maker Jimmy Choo (LON:CHOO) was not the belle of the ball for investors as shares eased 2.28% to 162p.
Revenue for the six months to June 30 grew 6.5% to £158.5mln, giving adjusted operating profits of £27.7mln – which was flat year on year.
In small caps, Minera IRL (LON:MIRL, CVE:IRL) has strengthened its depleted board with the appointment of a new director, Jaime Pinto.
At the company's annual general meeting, the proposal to re-elect chairman Daryl Hodges as a director was not approved, leaving the company with just two directors. Shares rocketed 92.38%