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FTSE 100 makes gains as markets bounce back

FTSE 100 makes gains as markets bounce back

The FTSE 100 index climbed 1.6 per cent to 5,867.13 as other European indices also opened higher.

Germany’s Dax index was up 1.5 per cent to 9,716.62, while the Cac 40 was nearly 2 per cent higher, at 4,288.50 at 8.52am.

European stockmarkets and Asian shares reacted positively to the European Central Bank meeting yesterday (January 21), where Mario Draghi hinted at more stimulus at the next meeting.

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Japan’s Nikkei 225 index is trading strongly, up 5.9 per cent to 16,958.53.

Bernard Aw, market analyst at IG Group, said: “The elation was translated into gains for equities and oil. European indices marched strongly higher, while US stocks were appropriately less impressed but still benefited.”

But he cautioned the ongoing global financial market turmoil “is far from done”.

“There are expectations that we are going to see more pain before we see more permanent relief,” he added. “Concerns about China will remain. Focus will be on further yuan devaluation, which I feel is a high possibility, although gradually, not sharply.”