The FTSE 100 is extending its recovery on Tuesday, with the index on track for a third consecutive session of gains as stronger global markets and easing pressure on bond yields support sentiment.
The blue-chip index was up around 0.6% in early trading, after rising 0.34% on Monday to close at 10,497.94 points. The latest move follows a difficult previous week, when the FTSE 100 suffered its steepest weekly decline since April.
The recovery is being supported by gains across global equity markets. Wall Street posted another strong session on Monday, with the Nasdaq rising 1.1% to a record close, while the S&P 500 gained 0.7%. European markets followed higher, with the STOXX 600 also gaining in early trading.
Technology shares remain a key source of momentum, but the FTSE 100 is also benefiting from strength across several of its major sectors.
AstraZeneca was among the strongest blue-chip performers, rising around 2% and helping lead the FTSE 100 higher. Healthcare stocks were also among the strongest performers across European markets, supporting the wider recovery.
Mining shares are another important source of support for London stocks. The sector benefited from stronger metals prices during Monday’s session, with Fresnillo, Rio Tinto and Anglo American among the companies gaining ground.
Oil prices remain an important factor for the UK market. Brent crude was around $100.70 a barrel early Tuesday, with expectations of increased supply helping to contain some of the pressure created by the recent rise in energy prices.
The FTSE 100’s international exposure also means movements in currencies, commodities and global markets remain important drivers of the index. A large proportion of the revenues generated by its constituent companies comes from outside the UK, giving the index a different exposure to the domestic economy than the more UK-focused FTSE 250.
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