UK shares recovered some ground on Friday after another bruising day in global markets yesterday as central banks around the world hiked interest rates in an attempt to bring soaring inflation under control. 

The FTSE 100 rose 59 points, or 0.8%, to 7,101 after slumping over 3% to a three-month low the day before as the Bank of England followed through with an expected quarter percent rise to borrowing costs. 

Cautious optimism spread in European markets, with Germany’s Dax up 1.2% and France’s CAC 40 up 1%.

That followed a tough day on Wall Street, with the S&P 500 falling 3.3% as investors lost their nerve following the US Federal Reserve’s aggressive three-quarters per cent hke of interest on Wednesday. The tech-heavy Nasdaq closed at its lowest levels since late 2020, losing 4.8%.

The FTSE was propelled by mining group Glencore (GLEN), which is expected to publish record-breaking first-half trading profits of $3.2bn today, rising 3.5% to 480p.

Next (NXT) was the second-biggest mover, jumping 3% to £59.42, followed by Baillie Gifford’s Scottish Mortgage (SMT ), which rose 2.9% to 690p, recovering some share price losses earlier in the week.

Consumer names also recorded share price rallies, with Ocado (OCDO) and Diageo (DGE) both up more than 2.5%.

Other commodity stocks took a hit, with Mexican precious metals mining company Fresnillo (FRES) falling 1.9% to 801p, BP (BP) down 1% to 400p, and Rio Tinto (RIO) losing 0.5% to £54.22.

The FTSE 250 bounced back more strongly, trading up 319 points, or 1.7%, to 19,046. Consumer cyclicals saw the biggest positive share price rises, closely flowed by healthcare stocks.

Gains were driven by Aston Martin Lagonda (AML), whose shares have rocketed 11% to 520p, and Trustpilot (TRST), which was up 6.2% to £88.65.

Other big risers include NB Private Equity Partners (NBPE ), gaining 5.6% to £14.20, and magazine publisher Future (FUTR), up 5% to £16.30.

Vietnamese investment trusts, Vietnam Enterprise (VEIL ) and VinaCapital Vietnam Opportunity (VOF ) moved in the other direction, falling around 2% each to 657p and 470p respectively.   

TBC Bank Group (TBCG) fell 2.7% to £13.22, continuing its turbulent performance in recent days.

‘We’ve seen quite the market meltdown in the last 24 hours, in the aftermath of a raft of rate hikes from the Federal Reserve, Swiss National Bank and the Bank of England,’ said CMC Markets chief analyst Michael Hewson.

‘With the European Central Bank also stirring from its slumber in looking to start raising rates next month, the one way bet which was the US dollar is now facing competition when it comes to sequential rate rises from central banks.’