London shares prices closed in positive territory on Wednesday, after a solid Asia session boosted sentiment earlier, as investors eyed the latest policy announcement from the US Federal Reserve.

The FTSE 100 ended the session up 1.62% at 7,291.68, and the FTSE 250 was ahead 3.2% at 20,905.54.

Sterling was in the green as well, last rising 0.46% on the dollar to trade at $1.3102, and strengthening 0.08% against the euro to €1.1914.

“Today has delivered a double-whammy of gifts for embattled markets,” quipped IG chief market analyst Chris Beauchamp.

“First the Chinese deputy PM hints at economic stimulus, providing a huge bounce for stocks there and giving the rest of the world hope that a sizeable economic package is on the way, evoking good memories of previous stimulus efforts that helped to stabilise the world’s second largest economy.

“As if that wasn’t enough, the Russians and Ukrainians appear to be making some progress towards a deal, including a cease fire and Ukraine halting any lingering efforts to join NATO.”

Beauchamp said while the first stirrings of a deal were not an agreement, for markets that were desperate for positive news, the developments were a welcome relief.

Sentiment got a boost after China’s government pledged support to keep financial markets stable, and amid signs of progress in Russia-Ukraine peace talks.

Ukrainian president Zelensky confirmed in a late-night address on Tuesday that meetings between officials from both sides were ongoing, adding that “the positions at negotiations are more realistic now”.

Russia was looking set to default on its debts for the first time since the 1990s earlier, as economic and financial sanctions began to bite, with interest payments of $117m on two dollar-denominated sovereign bonds sold in 2013 due.

They were the first coupon payments to fall due since Russia invaded Ukraine, and the US, UK and European Union responded by imposing economic and financial sanctions on Moscow.

Moscow had already hinted that it could pay creditors in “unfriendly” countries in roubles, with Fitch Ratings saying a “forced redenomination” of payment obligations would indicate that “a default or default-like process has begun”.

The credit rating agency downgraded Russia earlier this month to ‘C’, reflecting its view that a sovereign debt default was imminent.

Should Russia default, it will be its first since 1998 – when it triggered a financial crisis – and the first on its foreign-currency debt since the 1917 revolution, when the new Bolshevik government refused to pay the last tsar’s debts.

The International Energy Agency (IEA), meanwhile, warned that global economic growth would be hit by a combination of rising commodity prices, a lack of supply from Russia, and sanctions on Moscow.

It said in its monthly report that almost three million barrels per day of Russian oil and products might not reach the market from next month.

“We see a reduction in total [Russian] exports of 2.5 million barrels per day, of which crude accounts for 1.5 million barrels and products one million barrels,” the IEA said, also forecasting lower Russian domestic demand for oil products.

“These losses could deepen should bans or public censure accelerate.”

Russia exports between seven and eight million barrels of crude and products daily.

Across the pond, US retail sales came in far above forecasts ahead of the much-anticipated Federal Reserve decision later in the global day, thanks to upwards revisions to data for January.

According to the US Department of Commerce, retail sales volumes grew at a month-on-month pace of 0.3% in February to reach $658.13bn.

The rate of monthly increase was one tenth of a percentage point less than what economists had pencilled in.

Markets are now keenly awaiting the Federal Open Market Committee’s (FOMC) interest rate decision, due at 2100 GMT.

Economists were picking a 25-basis point hike in the federal funds rate to 0.5%, as America’s central bank battles red-hot inflation and a cost of living crisis.

Back in UK equity markets, Anglo-Russian precious metals miner Polymetal International jumped 13.91%, in the latest chapter of a turbulent few weeks for the stock.

Asia-focused plays were also in the green, with Prudential up 5% and Standard Chartered ahead 6.09%.

Both suffered heavy losses on Tuesday, on the back of concerns around the impact of a fresh Covid outbreak in China and possible sanctions from the US.

Computacenter was ahead 8.8% after it hiked its full-year dividend and reported double-digit revenue and profit growth in 2021.

Software and cloud services specialist Bytes Technology Group advanced 10.74% after it hailed “another upbeat year”, with results ahead of expectations.

Travel-related stocks continued their recovery from recent invasion-fuelled losses, with British Airways parent IAG up 4.93%, InterContinental Hotels ahead 4.28%, low-cost carriers easyJet and Wizz Air ascending 5.24% and 4.36%, travel operator TUI 3.67% firmer, Premier Inn owner Whitbread adding 4.41%, train station and airport caterer SSP Group rising 5.58%, and cruise operator Carnival 5.25% higher.

Cider pusher C&C Group fizzed 9.31% higher after it finished its 2022 financial year with a “robust return to trading”, driven by strong consumer demand.

On the downside, cybersecurity software firm Avast tumbled 13.26% after the UK’s Competition and Markets Authority said its acquisition by US rival NortonLifeLock raised competition concerns.

The competition watchdog said the deal could be referred for an in-depth probe if its concerns are not addressed.

“The regulator’s involvement creates a spanner in the works for the $8.6 bn acquisition of Avast by NortonLifeLock,” said Victoria Scholar, head of investment at Interactive Investor.

“There are concerns that the tie-up would diminish competition, resulting in potentially less choice and higher prices for cyber security software among British customers.

“Given the backdrop of tensions between Russia and Ukraine and fears of cyber warfare, cybersecurity products are more important than ever, potentially contributing to this aggressive response from the CMA, which both sides will be keen to respond to in a way that will breathe life back into the deal.”

Gold miner Centamin, meanwhile, slid 9.35% after its full-year profits fell short of expectations, and as prices for the yellow metal fell further.

Market Movers

FTSE 100 (UKX) 7,291.68 1.62%

FTSE 250 (MCX) 20,905.54 3.20%

techMARK (TASX) 4,301.27 1.96%

FTSE 100 – Risers

Polymetal International (POLY) 148.00p 13.91%

Scottish Mortgage Inv Trust (SMT) 961.20p 9.38%

Intermediate Capital Group (ICP) 1,716.00p 7.12%

Mondi (MNDI) 1,523.00p 7.01%

St James’s Place (STJ) 1,421.00p 6.76%

Antofagasta (ANTO) 1,632.50p 6.63%

Burberry Group (BRBY) 1,685.00p 6.22%

Standard Chartered (STAN) 500.20p 6.09%

Abrdn (ABDN) 208.10p 6.01%

Pershing Square Holdings Ltd NPV (PSH) 2,840.00p 5.58%

FTSE 100 – Fallers

Avast (AVST) 560.00p -13.26%

BAE Systems (BA.) 706.00p -3.60%

National Grid (NG.) 1,119.00p -3.15%

United Utilities Group (UU.) 1,055.50p -2.58%

Severn Trent (SVT) 2,862.00p -1.92%

Shell (SHEL) 1,903.60p -1.88%

SSE (SSE) 1,651.00p -1.55%

Airtel Africa (AAF) 142.30p -0.49%

Reckitt Benckiser Group (RKT) 5,770.00p -0.47%

Tesco (TSCO) 277.65p -0.31%

FTSE 250 – Risers

Fidelity China Special Situations (FCSS) 254.00p 16.02%

Trustpilot Group (TRST) 162.00p 13.45%

Bytes Technology Group (BYIT) 468.00p 10.74%

Aston Martin Lagonda Global Holdings (AML) 936.00p 10.37%

C&C Group (CDI) (CCR) 207.80p 9.31%

Baillie Gifford US Growth Trust (USA) 216.50p 9.12%

Baltic Classifieds Group (BCG) 139.50p 8.98%

Ferrexpo (FXPO) 161.40p 8.98%

Computacenter (CCC) 2,868.00p 8.80%

XP Power Ltd. (DI) (XPP) 3,760.00p 8.73%

FTSE 250 – Fallers

Centamin (DI) (CEY) 88.98p -9.35%

Chemring Group (CHG) 324.00p -4.00%

QinetiQ Group (QQ.) 298.80p -3.58%

Babcock International Group (BAB) 330.00p -3.40%

Drax Group (DRX) 684.50p -2.42%

ICG Enterprise Trust (ICGT) 1,162.00p -2.19%

Energean (ENOG) 985.00p -1.60%

Endeavour Mining (EDV) 1,880.00p -1.57%

Vivo Energy (VVO) 137.40p -0.72%

Centrica (CNA) 78.08p -0.59%

(Source)