FTSE recovers from bombing outrage

In London, the FTSE 100 gained 1.4 percent on the week to close at 5,232.2 on Friday, while the FTSE 250 gained 1 percent over the week and reached an all-time high when it closed at 7,518.7.

Volume on Friday was 2.8 billion shares, about average for a summer Friday and much lower than Thursday’s activity.

Some investors said the recovery after Thursday’s events shows the market’s resilience, while others were surprised that the market seemed to be ignoring weak economic data and a slowdown in consumer spending.

Investors seemed to be projecting a feeling that the threat of terrorism has become merely a normal part of everyday life.

Sectors that fell on news of the bombings on Thursday came back on Friday, including airlines and some but not hotel groups. Life insurers also rebounded. Meanwhile in the eurozone, the FTSE Eurofirst 300 was up 1.3 percent on the day and 1 percent on the week to close at 1151.34.

The oil sector was up on rising crude oil prices, but tire makers fell on high rubber prices. On a report that high demand from China could send prices to a 9-year high by the end of the year sent shares in Michelin down 6.4 percent to €47.67 while German tire maker Continental declined by 2.4 percent to €58.56.

In Tokyo, the Nikkei 225 lost 0.2 percent Friday to 11,565.99, while the Topix lost 0.22 percent to close at 1,177.61. Private sector machinery orders were down 6.7 percent in May compared to April. Exporters, including Sony, Canon, and Toyota were down, but retailers were up.

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