Fri, 24th May 2019
After a very difficult month, the FTSE 100 closed October on a rally, jumping more than 100 points to end on a high note. A similar picture played out across the global stock markets, with the US, Asian and European markets all looking strong.
Michael Hewson of CMC Markets said that the rebound could have been partly down to some end of month adjustments to positions. In addition most of the bad news that is incoming could have been priced in to some extent. For a couple of weeks, the major stock markets were quite squarely in the red. However, there have been some positive fundamentals. For example, the price of Brent Crude rose to $76.20, and this boosted both BP and Shell.
The FTSE 250 was also looking strong, with Premier Oil one of the better performers of the day. Computacenter, however, struggled, as the IT services company reported that it had seen a three percent fall in quarterly revenue. The firm said that it did expect to see improved growth before acquisitions, however the growth would not be at the levels that it had seen in the first half of the year. The UK high street is also showing weakness, with Evans Cycles being the next in a line of companies to get bought out of administration. Meanwhile, WH Smith has opted to expand its airport operations - an element of the company that has been profitable to date, buying the US airport-focused retailer InMotion in a deal that is worth £155 million.