Market report: FTSE 100 rises on relief at less severe lockdown changes

The gap between investors’ view of the markets and the reality of the economic woe wrought by the Covid crisis appeared to widen on Wednesday.

Stock markets have moved out of lockstep with economic indicators since the depths of a global rout in March. So it proved again today — PMI data for the UK and Europe showed the post-lockdown economic bounce was running out of steam, adding to the gloom around further restrictions in England, but the FTSE 100 rose more than 2% up, 124,93 points at 5954.39.

The positive sentiment — which almost repaired the damage done by Monday’s brutal sell-off — came after strong trading in America. Tech stocks including Amazon and Facebook led the US gains, while in the UK Rolls-Royce and Ladbrokes owner GVC were the biggest risers on the blue-chip index, up 6% and 5% respectively.

“Investors seemed to breathe a sigh of relief that the coronavirus restrictions (in England at least) aren’t as severe as back in March and, taking its cue from yesterday’s strong showing on Wall Street, the FTSE 100 made solid gains,” said AJ Bell investment director Russ Mould.

Amid the crisis, a handful of winners have emerged including soap maker PZ Cussons which has seen sales spike.