Tue, 16th Jul 2019
The top share index in the UK was back in positive territory again on Tuesday as signs that the overheating in the Chinese economy is beginning to cool helped to lift investors. By the close of trade, the FTSE 100 was higher by 0.58 per cent, reaching 6313.
News that inflation is China has slowed provided a much-needed boost to the market and eased fears over demand for raw materials. Also helping sentiment was a strong start to the US earnings period, with good results from aluminium producer Alcoa surpassing expectations.
Even the news that one of the major credit rating agencies, Fitch, have slashed the rating for China, dropping them from AA- to A+ couldn't put a dent in confidence.
With risk appetite creeping back to the table, Barclays was in the top ten on the bluechip leaderboard after being singled out as one of the primary stocks which would be in a particularly strong position to take advantage of the recent weakness of sterling against the US dollar. Vodafone, Shell and GlaxoSmithKline were all also pinpointed as being in a good place, sending the stocks higher.
Other banking stocks were also on the front foot with RBS and Lloyds both rising too.
At the opposite end of the table, drinks manufacturer Diageo tumbled by 2.55 per cent, propping up the rest of the FTSE 100 after being identified as trading at a 50 per cent mark-up compared to the rest of the sector.