FTSE rises to two-week high as housebuilders rally

London’s top flight moved 0.64%, or 47.27 points, higher to finish at 7,453.69.

The FTSE 100 reached its highest close for two weeks (Lucy North/PA) (PA Wire)

Shares finished higher in London after a strong session for housebuilders and a positive opening on Wall Street.

The FTSE 100 reached its highest close for two weeks as property giants Persimmon, Taylor Wimpey and Barratt were carried higher by hopes that interest rates could peak sooner than expected as market expectations remained steady.

London’s top flight moved 0.64%, or 47.27 points, higher to finish at 7,453.69.

All major European markets had stronger afternoon trading as the main US indices opened higher despite a mixed bag of banking updates.

European and most US stock indices remain in positive territory for the day despite mixed US bank results

Axel Rudolph, IG

Germany’s Dax index was 0.41% higher for the day while the Cac 40 closed up 0.46%.

Axel Rudolph, senior market analyst at IG, said: “European and most US stock indices remain in positive territory for the day despite mixed US bank results.

“Whereas Bank of America and BNY Mellon’s Q2 results beat estimates on better interest income, investment banking and lower expenses, Morgan Stanley’s profits dropped by 14% due to the global slowdown in deal making and trading.”

Meanwhile, sterling dipped as the US dollar clawed back ground. The dollar stabilised despite weaker-than-expected US retail sales data during the session.

The pound was down 0.16% to 1.305 US dollars and was flat at 1.162 euros at market close in London.

In  company news, Darktrace shares jumped after it said a probe into its finances has closed, and reported a jump in customers amid the evolving “ChatGPT era”.

The FTSE 250-listed firm told investors that the independent review led by accounting giant Ernst & Young (EY) launched in February had concluded.

Investors cheered the news, sending its shares up 81.7p to 375.7p as a result.

Elsewhere, online retail firm Ocado also had a strong session, after the group swung to an underlying profit and said its retail arm is on track to post annual earnings amid mounting pressure from its joint venture partner Marks & Spencer.

The firm clawed its way out of the red and said the Ocado Retail business – run in partnership with M&S – has returned to an underlying profit in recent months.

Ocado shares were up 110.6p at 691.6p at the close.

Financial services firm Just Group finished in the green after bosses hailed a “consistently busy” first six months of the year.

It saw shares lift by 7.3p to 84.5p after the Surrey-based group told investors that retirement incomes sales more than doubled over the half-year to June.

Bloomsbury edged 2p lower to 440p despite the publisher holding firm on guidance and reporting a 9% sales increase for the past four months.

The price of a barrel of Brent crude oil rose by 1.24% to 79.47 US dollars at the time markets were closing in London.

The biggest risers on the FTSE 100 were Ocado Group, up 110.6p to 691.6p, Taylor Wimpey, up 4.8p to 108.9p, Persimmon, up 45p to 1,092p, Barratt Developments, up 15.9p to 424.3p, Johnson Matthey, up 58.5p to 1,824p.

The biggest fallers on the FTSE 100 were Compass Group, down 32p to 2,092p, Beazley, down 8p to 557p, BT Group, down 1.4p to 121.6p, Rentokil Initial, down 7p to 616.2p, and Vodafone Group, down 0.47p to 71.42p.