The FTSE 100 Index recovered some of Tuesday’s losses on Wednesday as EU referendum fears eased and Poundland got a takeover boost.
The Footsie gained 51 points to 5974 while small-cap indices were also in positive territory.
Positive sentiment surrounding the outcome of the UK’s EU vote seemed to be driving the rise after betting odds showed a 62% likelihood of Britain staying in the 28-nation bloc.
Connor Campbell at spread-betting firm Spreadex said: “Reports that betting odds are reflecting a 62% probability of Britain staying in the EU, something backed by Spreadex seeing the chunkiest bets on the referendum in favour of Vote Remain, may have helped ease Brexit fears.”
Bargain hunters focused on resource stocks such as Anglo American PLC (LON:AAL) and BHP Billiton PLC (LON:BLT).
But results from house builder Berkeley Group Holdings PLC (LON:BKG) fell flat, prompting market makers to adjust the share price some 1.7% downwards to 2938.
Shares in Taylor Wimpey PLC (LON:TW.) were off 1.3p at 171.8p.
The company said there was “robust underlying demand” in the housing market, but noted uncertainty affecting current transaction levels.
Reservations in the first five months of 2016 fell 20% year-on-year on reduced new launches in the run-up to the referendum.
Jimmy Choo PLC (LON:CHOO) was in fashion after an upbeat trading statement. Shares in the designer shoe retailer advanced 14p, or 14.6%, to 110p.
Shares in Poundland PLC (LON:PLND) bounced 6.4% to 208.25p after it emerged that Steinhoff International, the owner of Bensons for Beds and Harveys in the UK, was considering a takeover bid for the discounter.
Steinhoff has failed in bids to take over Home Retail Group PLC (LON:HOME) and French electrical retailer Darty PLC (LON:DRTY).
Aureus Mining Inc (LON:AUE) agreed an equity financing deal with MNG Gold Jersey Ltd to bankroll the restart of a processing plant at the New Liberty gold mine in Liberia. Shares rose 14.3% to 3p.
Severfield PLC (LON:SFR) ticked up 11.6% to 53p on news that the structural steel group had returned to revenue growth.
But Servelec Group Plc (LON:SERV) dived 35.3% to 220p as the software group warned on annual profits due to contract delays.
Preview
London’s FTSE 100 could be set to break a losing streak as this morning the blue-chip benchmark is expected to start positively.
Concerns over an apparently looming Brexit had been among the issues blamed for downward pressure on global equities, as the Leave vote has been leading the polls.
Meanwhile attentions will briefly turn to the US Federal Reserve on the second day of a two day policy meeting. Better than expected US retail sales data provided some positivity.
Wall Street nevertheless closed Tuesday’s trading in red. The Dow Jones was down 57 points, 0.33%, to 17,674. The S&P 500 edged 0.18% lower to 2,075, and the Nasdaq dipped 0.1% to 4,843.
Asian trading was better though. The Shanghai Composite led the way with a 1.54% rally to 2,886 while Japan’s Nikkei rose 0.6% to 15,959 and Hong Kong’s Hang Seng gained 0.18% to 20,421.
In Australia the ASX 200 was down 0.86% to 5,158.
Oil prices pulled back a little, with Brent crude priced just above US$49 per barrel and WTI crude was at around US$47.80. Meanwhile, gold was priced at around US$1,285.
Spreadbetting and CFD firm IG Markets sees London’s FTSE 100 some 20 points higher about an hour ahead of Wednesday’s open, calling the benchmark at 5,938 to 5,942.