Major European markets ended higher on Wednesday after a dovish rate hike by Canada’s central banks helped boost positive sentiment.
The FTSE 100 was among the markets to close higher as strength in commodities companies helped offset the impact of the strong pound.
London’s top index ended the day up 42.59 points, or 0.61%, at 7,056.07.
Michael Hewson, chief market analyst at CMC Markets UK, said: “It looked like another mixed day for European markets, until 3 p.m. when the Bank of Canada raised rates by 50 basis points minus provided that. to 3.75%, suggesting that central banks are beginning to wake up to the possibility that overly aggressive rate hikes could do more harm than good.
“Markets are also wondering, could the Fed follow suit next week after another bad run of US housing numbers.
“A jump in basic resources saw the FTSE 100 rebound into the black as the US dollar slid and copper and crude oil prices soared, helping lift the mining heavyweights.”
On the continent, other major markets also rose, with the Bank of Canada’s rate decision pushing up in the second half of trading.
The German Dax improved by 1.04% at the end of the session and the French Cac ended up 0.43%.
Across the Atlantic, sentiment was mixed, with the Nasdaq suffering losses after Microsoft and Alphabet released disappointing trade updates.
Meanwhile, the pound hit a new six-week high on Wednesday as confidence continued to recover on easing rate hike expectations.
The pound was up 1.1% against the dollar at 1.159 and 0.18% against the euro at 1.152 at the close.
In corporate news, Dettol maker Reckitt lost value after revealing a drop in sales volumes in the last quarter.
The company said total revenue was higher, but that was due to changes in product prices and the mix of items purchased.
Shares of Reckitt ended the day down 244p at 5,722p.
Banking giant Barclays fell slightly at the close despite posting better-than-expected earnings.
The FTSE 100 company told shareholders that profits hit £2bn in the last quarter amid a boom in fixed income, which jumped 63% to £4.7bn for its international division, as its clients increased their trading during the recent period of market volatility. .
It was down 0.4p at 149.82 late in the session.
Standard financial firm Standard Chartered was among the worst performers on the day after its provisions for bad debts rose amid continued investor caution towards the Chinese market.
That means shares fell 28.4p to 526o despite a better-than-expected rise in earnings.
The price of oil rose as it also benefited from the belief that interest rate hikes are slowing.
Brent crude rose 2.32% to US$95.61 a barrel as London markets closed.
The biggest risers in the FTSE 100 were Antofagasta, up 81p at 1,227.5p, Fresnillo, up 30.8p at 745p, Anglo American, up 114p at 2,772.5p, Rightmove, up 19.4p to 508.8p and Kingfisher, up 8p to 221.2p. .
The biggest fallers on the day were Standard Chartered, down 28.4p at 526p, Reckitt, down 244p at 5,722p, Coca-Cola HBC, down 49.5p at 1,904p, Whitbread, down from 48p to 2,574p and Haleon, down 4.8p. at 268.3p.