The London market rallied after two major banks said now was the perfect time to buy British stocks.
The FTSE 100 rebounded 1 per cent, or 74.31 points, to 7371.46 while the FTSE 250 rose 0.9 per cent, or 193.21 points, Universitas Alma Ata Yogyakarta to 21,645.71 after JP Morgan analysts said London-listed firms looked ‘exceptionally cheap’.
Meanwhile, Morgan Stanley said there was a ‘compelling case’ for buying stock in FTSE 350 companies, as UK equities were ‘more defensive’ than global peers.
Stocks rally: The FTSE 100 rebounded 1% while the FTSE 250 rose 0.9% after JP Morgan analysts said London-listed firms looked ‘exceptionally cheap’
The assessment from the Wall Street banks was echoed by AJ Bell investment director Russ Mould, who noted that the lack of tech stocks in the FTSE 100 may now be a blessing amid a sell-off.
He said: ‘The FTSE 100 remains an outlier in global markets due to the construction of its index.
‘For years it was criticised for lacking exciting fast-growth tech stocks.That’s now worked to its advantage. Being dominated by the banking, energy and tobacco sectors means the FTSE 100 has been one of the best performing major indices globally this year.’