A bruising week finished with the FTSE 100 index back above 7000 this morning, as investors seized on trading opportunities created by the inflation-led sell-off.
The buy-the-dip strategy particularly helped BT Group, Burberry and Hargreaves Lansdown, whose updates earlier in the week had been somewhat lost in the turbulence.
The trio were up by around 2% as a stronger session on Wall Street overnight calmed the mood in London following the market’s worst performance in eight months on Tuesday and an initial fall of 2.5% yesterday.
The selling reflected fears that policy makers will have to take earlier-than- expected action to prevent the US economy from overheating.
AJ Bell investment director Russ Mould pointed out: “We’re operating in a through the looking-glass world where seemingly bad news is taken positively by the markets on the basis it means central banks won’t pull back on the stimulus front or put up rates.”
Watch: FTSE 100 'milestone' as it tops 7,000 mark for first time in more than a year
The FTSE 100 was up 51.83 points to 7,015.16, having started the week at 7,130, while the domestic-focused FTSE 250 index was ahead 0.7%, or 155.72 points to 22,225.03.
Second-tier risers included Sabre Insurance, up 6p to 262.5p after it reported growth in its policy count as motorists returned to the roads in April.
Housebuilder Crest Nicholson was 1.2p higher at 422.4p after selling its 50% stake in Longcross Studio, where blockbusters including Skyfall and Fast & Furious 6 have been shot. Crest expects the disposal to Aviva Investors to deliver a £10 million boost to profits.
Gulf Marine Services, whose fleet of self-propelled lift boats are used in offshore oil, gas and renewable energy, fell 0.19p to 7.22p after reporting wider losses of $124.3 million for last year.
The Abu Dhabi-based company is more upbeat about this year’s prospects after average fleet utilisation increased to 81% and its recently deployed cantilever system on GMS Evolution secured a long-term contract.
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