UK markets climbed steadily throughout the day, with both the FTSE 100 and FTSE 250 indices locking in solid gains. A few specific London-listed companies saw big run-ups in their share prices, which helped the UK avoid the downward pressure faced in many other European markets.
“Good results from various major names have helped maintain a degree of optimism in London, which contrasts with nervousness in other markets ahead of central bank meetings,” said Chris Beauchamp, a market analyst at IG Index.
The FTSE 100 rose by 78 points, or 1.4%, to close at 5,713. The FTSE 250 also pushed ahead by 50 points, or 0.4%, to close at 11,186.
The main market winner amongst the UK-listed large-caps was the retailer, Next (NXT). Shares rallied by nearly 7% after the company hiked up its earnings guidance for the upcoming year. The high-street chain also reported that it had boosted sales despite the tough market conditions.
Shire (SHP), Standard Chartered (STAN) and Admiral Group (ADM) also saw shares advance throughout the day, which gave the overall FTSE 100 a boost.
While corporate news was in the spotlight, most investors were holding their breath for upcoming announcements from central banks around the world.
“Traders eyes remained focused on tonight’s FOMC decision by the (US) Federal Reserve and tomorrow’s European Central Bank (ECB) rate decision, which could see more stimulus announced,” said Joshua Raymond, chief market strategist at City Index. The ECB President “Draghi has put himself in somewhat of a corner after last week ramping up of rhetoric that the ECB will do everything to preserve the euro. This rhetoric has increased optimism that there will be some form of stimulus announcement tomorrow. Failure to do so will badly disappoint a market exerting heightened expectations.”