FTSE investors rally

Investors rallied on the London market today, recouping some of the losses seen yesterday after the China-led sell-off.

The FTSE 100 Index closed up 19.3 points at 6621.4, as fears over China markets abated thanks to strong performances in the US amid speculation interest rates will be cut later this year.

Strong consumer confidence data also helped lift UK investor sentiment as people’s confidence regarding their own finances and the general economy shot to a two-year high during May, despite the recent rises in interest rates.

Miners featured heavily on the risers’ board after a positive review of the European mining market by HSBC. Xstrata led the pack with a gain of 122p to 2902p, or 4%, followed by Anglo American, ahead 124p at 3039p, Kazakhmys up 39p at 1298p, Lonmin up 104p at 3968p and Antofagasta, up 13p at 557.5p.

Catalysts-to-precious metals group Johnson Matthey also saw shares leap, up nearly 4%, or 58p to 1626p, after an upgrade from Citigroup.

The broker said the firm was “well set” with rapid expansion expected in a number of its key markets.

Meanwhile property firms continued their strong run from yesterday, when the stocks gained as investors sought cover amid the market volatility.

Land Securities was up 58p at 1946p and British Land ahead 22p at 1447p.

B&Q owner Kingfisher was the heaviest Footsie faller of the session with a 2% drop, shedding 4.5p to 248.25p amid general concern over the group’s prospects, despite strong first quarter results.

Pharmaceuticals giant GlaxoSmithKline continued to suffer on reports its diabetes drug Avandia is linked to heart risks, with a fall of more than 1%, down 18p at 1310p.

A broker downgrade from Citigroup saw British Airways off 3p at 470p, while Imperial Tobacco fell 11p to 2184p after reports in Spain suggested a binding deal from the company for Altadis was imminent.

In the second tier, pizza to biscuits giant Northern Foods saw its shares dive 3%, or 4.25p to 127p after a downgrade from Credit Suisse.

Shares in fellow FTSE 250 firm Pennon also fell, dropping 1%, or 8.5p to 676p, as the South West Water owner moved to dampen speculation that a bid for the company was on the cards after it said it knew of no reason for the recent strong increase in its share price.

Elsewhere, entrepreneur Mike Ashley’s recently listed Sports Direct International suffered further losses after its chairman David Richardson quit just three months after the group’s stock market debut.

Shares, which have lost nearly a third of their value since the flotation, dropped a further 5%, or 10p, to 205p.

The biggest Footsie risers were Xstrata up 122p at 2902p, Anglo American up 124p at 3039p, Johnson Matthey up 58p at 1626p and ICAP ahead 17.25p at 534.75p.

The biggest Footsie fallers were Kingfisher off 4.5p at 248.25p, Marks & Spencer down 12p at 699p, Tate & Lyle down 8.5p at 600.5p and GlaxoSmithKline down 18p at 1310p.