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FTSE fights backs as bulls hunt for bargains

FTSE 100 recovery gathers strength, with strong US open helping blue-chip stocks erase the bulk of yesterday's losses.

 
FTSE fights backs as bulls hunt for bargains
 

Bulls returned to the stock market in force today, with the FTSE 100's recovery gathering strength throughout the day and handed an extra boost by a positive US open.

After opening with only moderate gains following yesterday's US recovery, bullish sentiment continued to build throughout the day.

A strong open for the US Dow Jones, up 1.3%, provided the final push, helping the FTSE 100 gain 160 points, or 2.2%, to 7,300, just 37 points below the level at which it closed on Monday, before yesterday's sell-off.

'Equities are in recovery mode today after enduring a turbulent week,' said David Madden, market analyst at CMC Markets UK.

'A combination of shorting covering and bargain hunting is helping the markets today. It has been a brutal week for investors, but some are keen to step in and take advantage of the fall in prices.' 

Almost every single stock made gains, with only Fresnillo (FRES) and Randgold Resources (RRS) making significant losses, both down by just over 3%, as the precious metal miners were hurt by investors fleeing safe havens.

Scottish Mortgage (SMT ) jumped to the top of the index, up 6.9% at 451.2p, with the investment trust leading the way for a number of closed-end funds rebounding strongly from the sell-off.

Fund managers and insurers were also buoyant, with Old Mutual (OML) up 5.8% at 235.7p, Prudential (PRU) jumping 4.1% to £18.45 and Schroders (SDR) rising 3.4% to £35.67.

It was the same story on the FTSE 250, which jumped 2.4%, with Investec (INVP) the biggest riser, surging 10.6% to 618.4p, while 'small-cap' stocks rallied 1.8%. 

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