London’s blue-chip index subdued at the close despite being back on top

“London’s newly regained crown lost a little of its lustre this afternoon as the blue-chip FTSE 100 sagged under the weight of all those miners dazed from the latest update on China’s property sector,” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“But the more domestically focused FTSE 250 was still showing signs of the life that has helped the UK take back the title of Europe’s biggest stock market.

“Emmanuel Macron’s decision to plunge his country into political turmoil has jolted French investors, whilst the steady poll lead of Labour in the UK means a change of the guard has largely been priced in on this side of the Channel. But two weeks is an awfully long time in politics, especially with inflation data and an interest rate decision looming between now and then.

“Any surprises, unpleasant or otherwise, could make the second half of the race for Number 10 a lot more interesting and a lot more unpredictable.

“Investors like predictable, but not boring, and London’s been criticised for failing to attract its share of vibrant tech companies. What it does have is a large roster of well-established companies with solid stats which have been drawing increasingly avaricious attention in the form of takeover bids.

“That flurry of M&A activity, coupled with renewed optimism in the IPO department, seems to have finally struck a chord with investors eyeing up good old-fashioned value.”

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