FTSE leaps as global markets rebound amid slide in oil prices

The FTSE 100 leapt higher on the back of a rally for global markets as the price of oil dropped back.

Russian-linked stocks and financial firms were among the top performers in London as recent volatility continued.

The FTSE 100 ended the day up 226.61 points, or 3.25%, at 7,190.72 points.

Michael Hewson, chief market analyst at CMC Markets UK, said: “Markets in Europe have seen a sizeable rebound today, led by the Dax with decent sector gains across the board, helped by comments from the Russian foreign ministry which stated that it would be better if their goals in Ukraine were achieved through talks.

“We’ve seen a strong rebound in the likes of Russian miners Evraz and Polymetal after they both released updates saying that they didn’t consider themselves to be at risk of being affected by Russian sanctions.

“Financials and banks have enjoyed another decent session today, on course for two strong days of gains, as the sector looks to shrug off some big declines in the past few days.”

German stocks saw a particularly sharp rebound amid speculation that EU leaders might be on the cusp of pulling together a fiscal stimulus plan at a specially convened EU summit tomorrow.

The French Cac was up 7.13% and the German Dax surged 7.92% higher by the end of the session.

In the US, the main markets took their cues from Europe to open higher on the back of unwinding commodity prices.

Meanwhile, sterling lost pace against the euro, which improved ahead of Thursday’s European Central Bank session.

The pound increased by 0.02% against the dollar to 1.316, and dropped 0.2% against the euro to 1.189.

In company news, Stagecoach saw its value soar by more than a third after its bosses backed a £595 million takeover by German investment group DWS.

Shares in the transport operator lifted by 28.45p to 105p as a result.

The move scuppered plans for a £1.9 billion tie-up with coach operator rival National Express, which saw its owns shares jump 49.2p higher to 241.8p as investors welcomed the outcome.

Biffa shares bounced higher after the waste firm said HGV driver shortages have “eased” in recent months and highlighted an acceleration in revenue growth.

The company said revenues increased by 35% over the past 11 months compared with a year earlier as it benefited from acquisitions, taking shares 27p higher to 310p.

Elsewhere, gambling firm 888 closed lower after it held firm on trading guidance.

It came as the tripled its profits for the past year as online casino demand remained strong following the pandemic. Shares in the business moved 3.8p lower to 189.2p.

The price of copper, gold and oil all started to unwind on Wednesday as traders saw an opportunity to take profit following the jump to recent highs.

Brent crude slumped by 6.45% to 120.16 US dollars per barrel when the London markets closed.

The biggest risers on the FTSE 100 were Polymetal, up 63.68p at 155.7p, Evraz, up 14.58p at 92.54p, Melrose Industries, up 14.7p at 124.05p, and Electrocomponents, up 102p at 970p.

The biggest fallers on the FTSE 100 were Fresnillo, down 58.8p at 749.6p, BAE Systems, down 31.8p at 722.6p, BP, down 8.45p at 371.55p, and Anglo American, down 79p at 3,753.5p.