Markets: Bulls back on the run as FTSE bounces

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Upbeat figures from microchip maker ARM and oil giant BP helped the Footsie regain its poise yesterday.

UPBEAT figures from microchip maker ARM and oil giant BP helped the Footsie regain its poise yesterday.

The index closed 35.9 points higher at 6,282.8 in a marked recovery from Monday’s 100 point slump as strong corporate results on both sides of the Atlantic bolstered flagging investor sentiment.

Angus Campbell, head of market analysis at Capital Spreads, said: “Markets rebounded, indicating the bull run that commenced at the beginning of the year is not about to give up the ghost just yet.”

BP added more than 1 per cent or 6.65p to 468.7p after better-than-expected Q4 profits. Arm Holdings was 4 per cent or 39p higher at 931p afterQ4 results ahead of expectations.

Banking shares recovered from losses the previous day following Chancellor George Osborne’s confirmation that lenders could face break-up if they broke ring-fencing rules. Royal Bank of Scotland was 8.9p higher at 337.5p as investors waited for news of its fine over the Libor rate-rigging scandal, expected this week.

Temporary power supplier Aggreko was among the fallers after major shareholder Capital Group sold about £80 million of stock. It was down 17p at 1,581p.

Stirling-based insulation makerSuperglass fell after issuing a statement saying the board could not explain the recent climb in its share price. The stock dropped 12.8 per cent to 8.5p, as it added that trading conditions remained “extremely challenging”.

ICG-Longbow Senior Secured UK Property Debt Investments – a property investment vehicle is chaired by former Scottish Enterprise chief executive Jack Perry and possibly the longest name on the stock market – made its debut, rising from 100p to 101.88p.

NEW YORK: On Wall Street rallied last night as earnings came in stronger than expected and investors sought bargains a day after the market’s biggest drop since November.

The Dow Jones industrial average rose 99.22 points or 0.71 per cent, to close at 13,979.30 while the broader Standard & Poor’s 500 index gained 15.58 points or 1.04 per cent, ending on 1,511.29. The Nasdaq Composite index added 40.41 points or 1.29 per cent, to finish on 23,171.58.