RSA Insurance Group Plc and Royal Bank of Scotland Group Plc were the only stocks in the gauge that didn’t fall – they were little changed.
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While the Shanghai Exchange filed another blistering day of downgrades closing another 7.62% lower overnight, the UK senior listing took its cues from a calmer end to the day in New York yesterday, and a 1.42% rally on France’s CAC 40 at the open. “Both fear that policy makers today hold less effective ammunition to tackle downside risks”, said Michala Marcussen, chief economist at Société Générale, in a note. There had been speculation that Beijing over the weekend would provide more support for the financial system.
Oil stocks Premier Oil and Tullow Oil fell 7 to 10 percent. “It is notable that, in the two days prior to this move, official purchases of equities seem to have halted”.
The recovery comes after the index lost nearly five percent yesterday, slumping to its lowest level in almost three years amid a global stocks selloff.
But on Tuesday morning, the FTSE 100 crept up to 6,015 points.
Meanwhile, other miners listed in London found some relief after Monday’s rout.
BHP Billiton declined the most, shedding 6.1 percent.
Antofagasta PLC (ANTO.LN) shares climbed 6.8%, with the copper producer posting a rise in first-half net profit (http://www.marketwatch.com/story/antofagasta-profit-up-reaffirms-output-guidance-2015-08-25) to $706 million and backing its revised full-year output forecast. Glencore was the worst FTSE 100 performer, crashing 13 per cent to 137.9p, a fresh all-time low, while Anglo American slumped 9.9 per cent to 660.2p.
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Professor Kamel Mellahi, an emerging markets expert at Warwick Business School, said: ‘The market is looking for some strong signs that China has enough ammunition and more importantly it is willing to use it effectively to weather this storm.
