European stocks boosted despite gloomy forecast by IMF chief

The FTSE 100 was up by 78.62 points, or 1.03%, closing at 7,741.56.

European stocks were given a boost ahead of the Easter weekend, despite a gloomy forecast from the International Monetary Fund (Jonathan Brady/ PA) (PA Archive)

European stocks were given a boost ahead of the Easter weekend, despite a gloomy forecast from the International Monetary Fund (IMF) chief of a “rough and foggy” path ahead for the world economy.

London’s FTSE 100 strengthened further, lifted by insurers and property developers as new influential figures showed the UK’s construction sector edged up in March, albeit at a slower pace than February.

Meanwhile, Kristalina Georgieva, the IMF’s managing director, warned the world economy is expected to grow by less than 3% this year, down from 3.4% last year, and remain at that level for the next five years.

She said the slower path of growth would be a “severe blow” and increase the risk of hunger and poverty globally.

Nevertheless, the remarks failed to rattle investors and Europe’s top stock exchanges were all in the green when markets closed.

The FTSE 100 was up by 78.62 points, or 1.03%, closing at 7,741.56.

The German Dax was up 0.5% and the French Cac was up 0.12% at close.

But experts have cautioned that closely-watched jobs data in the US on Friday could rock global markets, even though the UK, Germany and other stock markets will be closed on Friday and Monday for Easter bank holidays.

Axel Rudolph, senior market analyst at online trading platform IG, said: “Friday’s US payrolls report will be a pivotal one for stocks.

“The worst outcome would be rising wages and a weaker jobs number, something that might reverse the growing expectation of a Fed (rate) pause in May.

“Such a scenario would likely put stocks at risk of giving back their recent gains.”

And it was a mixed start to trading in US markets on Thursday, with the S&P 500 up by 0.2% and Dow Jones flat by the time European markets closed.

The pound was flat against the US dollar at 1.2458 and down 0.2% against the euro at 1.1395.

In company news, energy giant Shell saw its share price rise after telling investors it expected a boost in gas production over the first three months of the year compared to the final three months of last year.

The company also said developments in Australia would help it supply more liquid gas, which is transported by ships, to countries around the world.

Its share price was up by 2.3% at close.

Recruitment firm Robert Walters cautioned shareholders that market jitters had “tipped over” from last year into the first quarter of this year, impacting companies’ hiring plans.

But the firm assured that vacancy levels and salary inflation remain “robust”, providing optimism that activity levels will begin to bounce back. Its share price slipped by 2.5%.

Meanwhile, World Chess announced it had listed on the London Stock Exchange with a market capitalisation of more than £40 million.

The company previously said it wanted to float after seeing an “explosion” of interest in chess and wanting to make the game more accessible to more people.

It raised just over £3 million in its initial public offering.

The biggest risers on the FTSE 100 were: Admiral Group, up 96p to 2,228p; Unite Group, up 35.5p to 979p; Land Securities, up 21.2p to 638.2p; Croda, up 198p to 6,554p; and Legal & General, up 7.2p to 242p.

The biggest fallers on the FTSE 100 were: ConvaTec, down 5.2p to 221.8p; Melrose Industries, down 3.4p to 160.5p; Reckitt, down 106.0p to 6,230p; Smiths Group, down 21.0p to 1,645.5p; and Rentokil, down 5.0p to 588p.