FTSE 100 Bounces Back From Worst Day Since April

FTSE 100 Steadies After Worst Day Since April The FTSE 100 index has steadied, posting small gains after a dramatic sell-off on Friday, its worst day since April. The index opened uncertainly but has since shifted into the green, with stocks across Europe also rising as risk appetite returns. The UK's benchmark index has gained 0.3% to 7,454.50, while the pound has strengthened against the dollar, trading at $1.24. The market's recovery comes after a tumultuous week, which saw the FTSE 100 plummet 2.5% on Friday, its largest decline since April 2022. The sell-off was triggered by budget whiplash, with investors reacting to the UK government's sudden change in fiscal policy. However, the panic seems to have been pacified over the weekend, with investors returning to the market with a more optimistic outlook. The immediate impact of the market's recovery has been felt across various sectors. The UK's top 100 companies, including heavyweights such as HSBC Holdings and Royal Dutch Shell, have seen their share prices rise. The FTSE 250, which tracks the performance of mid-cap companies, has also gained 0.5% to 20,644.50. In the bond market, UK gilts have outperformed, with yields falling at the shorter end of the curve. The 10-year gilt yield has declined to 3.55%, while the 2-year gilt yield has fallen to 3.25%. This shift in yields has been driven by investors seeking safer assets, such as government bonds, in a bid to reduce their exposure to risk. The market's recovery is a welcome relief for investors, who had seen their portfolios take a hit in the wake of the budget whiplash. However, analysts caution that the market's volatility is far from over, and investors should remain cautious in the coming days. As the market continues to navigate the aftermath of the budget whiplash, investors will be watching closely for any further developments. The UK government's fiscal policy will be under scrutiny, and any changes to the budget could have a significant impact on the market. In the meantime, investors are advised to remain vigilant and to keep a close eye on market developments.