ANOTHER bout of political nervousness and the expiry of FTSE 100 index options undermined an early dash into virgin ground by the FTSE 100, dragging the index back into negative territory for the rest of the session.
But a strong opening performance from Wall Street was the catalyst for a strong fightback by leading stocks. The Footsie was left with only the smallest of losses.
The FTSE Mid 250 index was never too troubled by the political concerns or the options expiry and posted a 15.4 gain.
Over a week highlighted by a strong Wall Street showing and a surprise reduction in interest rates, the FTSE 100 rose 91.1, or 2.5 per cent, easily outpacing the FTSE Mid 250 index, which rose 49 points, or 1.2 per cent.
Over the same period the Dow Jones Industrial Average put on 2 per cent.
The 25 basis points reduction in British interest rates on Thursday, plus the Dow's overnight 57 point advance, produced an instant mark up stocks at the start of trading yesterday, with the FTSE 100 hitting a record intra day high of 3767.4 at its initial reading.
Thereafter, it began to trickle easier, with traders and investors unnerved by a fresh round of rumours suggesting that John Major was about to announce a snap general election.
In the afternoon things steadied and a rising Wall Street ensured the Footsie regained ground.
