Modest gains for FTSE as world markets calm

World markets showed signs of stabilising today after the bloodbath that wiped £35bn (€50.94bn) from the value of leading shares in London last night.

The FTSE 100 Index stood 68.9 points higher at 5631.8 in the first hour of business, recovering around half of the losses of yesterday when investors ran for cover in the wake of interest rate rises by a number of central banks.

Japan’s Nikkei sparked the upturn with a rise of 0.8%, helped by bargain hunters after the index in Tokyo had initially racked up further losses.

Mining stocks, which slid yesterday on fears about a brake on economic growth, led the recovery in London with gains of 3% or more. Antofagasta led the way with a rise of 82p to 1928p, while Xstrata lifted 76p to 1891p.

Among other risers, Cable & Wireless rose 3p to 109.5p as investors backed the company’s decision to make its Bulldog internet arm a wholesale specialist.

Only National Grid was lower in the Footsie, easing 3.5p to 591p.

Outside the top flight, House of Fraser shares rose 6%, or 7.25p to 136p after a report said it had given its backing to an indicative offer of 150p a share from retail investment group Baugur.

Jeweller Signet also gained 2.75p to 95p, following better than expected first quarter profits.