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FTSE 100 rebounds; UK debt costs rise; property transactions surge – business live

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Rolling coverage of the latest economic and financial news

Latest: Property transactions rocketed in JuneFTSE 100 jumps as markets recoverBritish public sector net borrowing fell to £22.8bn in JuneBorrowing down £5.5bn on June 2020 as economy reopensInterest payments on government debt hit record £8.7bn last monthDebt servicing costs pushed up by higher RPI inflationMarkets rallying after Monday’s wobble

1.36pm BST

The FTSE 100 is clawing its way back towards the 7,000 point mark.

It’s up 108 points or 1.5% at 6089, meaning it’s now recovered almost all of the £44bn wiped out on Monday.

“A bumper rebound for US stocks has fed through to Europe this morning, with the FTSE 100 gaining over 1%. That comes despite Chinese efforts to undermine prices in key commodities, with the government laying out plans to auction reserves of zinc, aluminium, and copper.

“European markets are following their US counterparts higher in early trade today, with reopening stocks finally finding the kind of love many had expected in a week dominated by the UK’s removal of Covid restrictions.

1.23pm BST

The FTSE 250 index of medium-sized is on track for its best day in five months, as stocks recover from Monday’s dive.

The UK-focused index is up 1.7% today, gaining 374 points to 22,494, led by cinema chain Cineworld (+9%) and travel company National Express (+7.8%).

The situation with the more contagious delta strain of the Covid-19 virus is getting worse, especially in Asia. South Korea and Thailand have reported record infections, with the Japanese capital Tokyo likely to see a surge in cases as the Olympics gets underway. Efforts across many regions to curb the virus spread has dampened high expectations about demand for things like travel and tourism etc.

The only positive spin one can put on this in so far as equities are concerned is that it will help QE tapering by central banks. And that could be one of the reasons why we have seen the markets rebound over the past couple of days. Another reason is the generally supportive corporate earnings that we have seen so far.

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