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UK markets staged a stunning afternoon recovery on Wednesday, reversing morning losses. Having spent most of the morning session firmly in the red and dipping back below 6,000, the FTSE 100 leapt after lunch as US markets opened brightly as investors homed in on signs that economies around the world will continue to reopen.
US markets were also buoyed by the resilience of key retail earnings, bouncing back sharply from Tuesday sell-off that snapped a three-day winning streak. As the UK markets closed, major US markets remain firmly on the front foot, led by the 1.9% jump of the tech-heavy Nasdaq. The Dow and S&P 500 posted 1.8% and 1.7% jumps.
The UK's benchmark FTSE 100 ended the day up 1.2% at 6,067.16, while the midcap FTSE 250 closed 0.4% to the good at 16,367.48.
RALLY LIKE IT'S 1999
Wednesday's winners were led by global data firm Experian after rallying nearly 8% to £27.15 after posting strong full year results and a confident outlook despite the impact of the pandemic.
Revenues were up 8% to $5.18bn on a like for like basis in the year to 31 March, while operating profits grew 9% to $1.39bn helped by strong demand for its services in the final quarter. The firm expects first quarter revenues to decline between 5% and 10%, but remains confident of its ability to bounce back 'once the crisis abates', and has therefore held its second interim dividend.
Aero-engineer Rolls-Royce was another shock winner despite unveiling major restructuring plans that will see at least 9,000 of its 52,000 global workforce laid-off.
The plan involves slashing civil aerospace engine production, which represents around half of group revenues, as airline customers and aircraft makers reduce orders due to the impact of the pandemic on global air travel.
But the shares shrugged-off any negatives to reverse earlier 4% losses to end the day more than 3% higher at to 276.2p.
Housebuilders and property firms were the biggest drag, with Berkeley, Taylor Wimpey and Barratt all posting 4% to 5% declines, while commercial landlord Land Securities fell 4.6% to 536.4p.
ELSEWHERE IN CORPORATE NEWS
Pharma giant AstraZeneca firmed 2% to £88.50 on announcing that a prostate cancer treatment had been approved in the US.
Among mid-cap stocks, high street retailer Marks & Spencer jumped 11% to 95.12p after it revealed that sales were down just 1.9% in the year to 28 March and cash flow was well ahead of its Covid-19 scenario in the first six weeks of the new financial year.
Close behind M&S was gambling technology company Playtech, rallying 6.5% to 246.1p as it reported better than expected operating profits for the first four months of the year.
Housebuilder Vistry gave up 4% to 728p despite a strong start to the year with over 70% of sites operating normally and an increase in the average sales rate accompanies by improved pricing.
Over the past eight weeks the firm has exchanged on 310 homes, completed on 257 sales and taken in 300 reservations net of cancellations, putting it ahead of where it expected to be at this stage.
Water utility Severn Trent added almost 2% to £24.50 as it hiked its annual dividend 7.2% amid a slight fall in underlying annual profit.
Gambling company William Hill added more than 4% to 127.15p after it estimated that it may receive as cash refund from UK tax authorities of between £125m and £150m.
Real estate company Great Portland Estates shed 1.6% to 631.2p, having booked a lower profit dragged down by weaker rental income and a fall in the value of its retail properties.
SMALLCAP WRAP
Oil services minnow Lamprell made astonishing ground after winning a new contract in the Middle East.
The deal will see Lamprell provide services and expertise on the Mahani Extended Well Test project, including hook-up and installation at the well, existing systems upgrade, associated tie-ins and a new 25km export pipeline. No financial details were made available but that didn't stop investors piling in, sending the share price soaring nearly 65% to 19p, taking Lamprell's market value from circa £40m to more than £65m.
Investment manager Ninety One, which was recently spun out of South African investment bank Investc, jumped 10% to 206p, having posted an 11% rise in annual profit after it welcomed fresh inflows into its funds.
Diagnostics company Renalytix AI soared more than 17% to 410p on news that it had entered into a joint venture with the New York's Icahn School of Medicine at Mount Sinai to produce Covid-19 antibody test kits.