The FTSE 100 closed higher on Wednesday, mirroring positive sentiment in global markets driven by hopes of easing US-China trade tensions and reduced concerns regarding US monetary policy independence. Economic data releases, including weaker-than-expected UK PMI figures, were monitored alongside corporate earnings reports.
- The FTSE 100 finished approximately 0.9% higher at 8,403.
- Market optimism stemmed from potential easing of US-China trade tensions.
- Concerns about the independence of US monetary policy lessened.
- UK business activity contracted in April at the steepest rate in over two years.
- Croda International led gains, surging 8.2% after reporting strong Q1 sales.
- Fresnillo was among the top losers, declining 5.2% due to a fall in silver and gold production in Q1.
The performance of the FTSE 100 appears to be heavily influenced by broader global factors and individual company performance. Positive external developments, like expectations of improved trade relations, seem to bolster the index, while disappointing economic data at home are a counterweight. Success of individual companies within the index, and struggles experienced by others, have a pronounced impact on overall movement.