Swiss move spooks investors

The Ftse 100 Index closed strongly ahead yesterday after a volatile session in which markets were buffeted by the fallout from the Swiss central bank’s move to end the franc’s exchange rate peg to the euro.

London’s top-flight ended 110.3 points up at 6498.8 after a choppy day which started with a recovery from the previous session’s steep, copper-price linked fall, before a sharp plunge into the red on traders’ initial reaction to the Swiss move.

But jitters prompted by the shock move — which will see the franc no longer capped at 1.20 euros — ebbed as investors digested the likely implications. Switzerland’s decision appeared to be a strong signal that it was cutting ties with the euro ahead of a round of quantitative easing by the ECB.