London markets turn around early losses on strong company earnings

London markets turned around early morning losses today, driven by a bumper crop of results lifting market sentiment.

The FTSE 100 and 250 were initially weighed down by a poor session on Wall Street on Tuesday triggered by fears over escalating tensions between the US and China after house speaker Nancy Pelosi’s trip to Taiwan.

The capital’s premier FTSE 100 index eventually added 0.49 per cent to close at 7,445.68 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, gained 0.73 per cent to finish above 20,000 points.

America’s top indexes shed losses yesterday driven by traders fretting over the consequences of Pelosi, the highest ranking law market to visit Taiwan in 25 years, heading to Taiwan.

Beijing officials, including leader Xi Jinping in a phone call last week with President Biden, have warned of unspecified retaliatory action for Pelosi’s Taiwan trip.

Russ Mould, investment director at AJ Bell, said: “Investors already have more than enough on their plate. Now they find themselves having to make room for one more worry, as tensions build between the US and China.” 

But, a strong set of results, most notable from house builder Taylor Wimpey, pushed the FTSE 100 into positive territory.

Taylor Wimpey said future profits will come in at the top end of its previous forecast, lifting its shares 5.5 per cent and to second on the premier index. 

Cybersecurity firm Avast surged over 40 per cent after a tie up with NortonLifeLock was provisionally cleared.