UK Shares Make Major Bounce Back Despite Brexit Scaremongering

British shares clawed back losses on Wednesday to end the year’s first trading day on a positive note after a disastrous 2018, helped by investor appetite for stocks deemed less risky and also by a comeback for oil majors despite weak data from China. 

London's blue-chip bourse FTSE ended 0.1% higher while the mid-cap index FTMC was up 0.5% after steep losses earlier on Wednesday, Reuters reported.

The indexes teetered as trading volumes remained roughly around two-thirds of their 90-day average during the session, after recording their worst yearly drop since the 2008 financial crisis last year. 

Heavyweights BP and Shell advanced 2.3% and 1.4% respectively, as crude prices erased earlier losses to trade in the black. 

Investors also took some notice of the positive domestic PMI data prompted by Brexit-induced stockpiling, although uninspiring Chinese data had sparked a global sell-off earlier and raised questions about the global economy. 

“Although stockpiling played a role in the strong UK PMI data, it was still the best economic news out there today,” said Jasper Lawler, head of research at London Capital Group. 

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Gary Cartwright

Gary Cartwright

Gary Cartwright is publishing editor of EU Today. 

An experienced journalist and published author, he specialises in environment, energy, and defence.

He also has more than 10 years experience of working as a staff member in the EU institutions, working with political groups and MEPs in various policy areas.

Gary's latest book WANTED MAN: THE STORY OF MUKHTAR ABLYAZOV: A Manual for Criminals on How to Avoid Punishment in the EU is currently available from Amazon

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