FTSE 100 Inches Higher On China Optimism

U.K. stocks traded higher on Wednesday, with positive earnings and production updates as well as optimism over Chinese economy boosting sentiment.

China’s central bank announced that it would cut the amount of cash that banks must hold as reserves by 50 basis points from February 5 for the first time this year to help the economy.

Also, media reports suggest that authorities are considering a package of measures to stabilize China’s slumping stock market.

The benchmark FTSE 100 was up 33 points, or 0.4 percent, at 7,519 after finishing marginally lower on Tuesday.

EasyJet jumped nearly 5 percent after the low-cost carrier said it expected winter losses to narrow this year.

Pub group J D Wetherspoon fell about 1 percent despite reporting higher sales in the last 25 weeks.

Tullow Oil climbed 1.1 percent after an announcement that it expects 2023 production to top previous guidance.

Fresnillo jumped 5.2 percent after it reported higher silver production for 2023.

Market Analysis