The announcement of a fragile two-week ceasefire between the US and Iran caused a sharp rebound in many investment company shares yesterday with Manchester and London (MNL) shooting up 13.5%.

A 104p rally to 874p pushed the £332m technology fund above its level before the outbreak of war at the end of February with a 10% year-to-date gain.

Other tech funds also made big gains. FTSE 100-listed Polar Capital Technology (PCT) closed 7.4% higher, outpacing smaller rivals Allianz Technology (ATT) and Herald (HRI) which rose 5.5% and 4% respectively.

Tech-heavy Scottish Mortgage (SMT) gained 8% to £13.88 while fellow blue chip, Pershing Square Holdings (PSH), a US hedge fund with positions in Amazon and Meta, matched that with a 326p rise to £43.48.

Below the FTSE 100, Molten Ventures (GROW) rose 5.3% to 495p and Schiehallion (MNTN), the £1.7bn Baillie Gifford private equity fund, rose 4% to $1.97.

Winding-down fintech backer Chrysalis (CHRY) rallied over 5% to 86.2p.

Hopes that the Strait of Hormuz would reopen saw the Brent crude oil price drop to $96.65 a barrel. That’s still well above the $72 level before the conflict but means a big inflation shock with consequent interest rate rises may be averted, reassuring rattled investors.

European stock markets rallied around 5% in response. The oil-weighted FTSE All-Share was more muted but rose 2.7%. The mid-cap FTSE 250 did better up 4%. In the US, the S&P 500 advanced 2.5% to 6,8782.81 and the Nasdaq tech index closed 2.8% higher.

These moves were reflected in other investment company gains. FTSE 100 trusts Tritax Big Box (BBOX) rallied 6.15 to 154p, 3i Group (III) continued its recent rebound with a 4.3% gain to £27.12, F&C (FCIT) moved 3.7% higher and Alliance Witan (ALW) added 2.6%.

In the FTSE 250, where most investment companies reside, UK equity income trusts Law Debenture (LWDB) and City of London (CTY) were bright spots, up 5.4% and 4% respectively. RIT Capital Partners (RCP), the Rothschild-backed global multi-asset fund, rallied 3.6% and Fidelity Special Values (FSV) sped 4.4% higher. TR Property (TRY) took on 4.4%.

Smaller funds made some big gains including Schroder European Real Estate (SERE) which rallied 7.6% to 62p and Ecofin Global Utilities & Infrastructure (EGL) which rose 6.7% to 272p. UK small-cap funds Rockwood Strategic (RKW) and Aberforth Geared Value & Income (AGVIT) added 6.6% and 7%.

BlackRock World Mining (BRWM) led its sector with a 5.9% rise to 984.8p as did Templeton Emerging Markets (TEM), up 5.8%.

Renewable funds were not left out either with Renewables Infrastructure Group (TRIG) and Greencoat UK Wind (UKW) bouncing back 3.3% and 2.2%.

Some of these gains may be pared back this morning. Trading in Asia resumed cautiously today with Japan’s Nikkei 225 and India’s BSE Sensex slipping 0.8% and 1% after yesterday’s sharp rises. The ceasefire is under strain with Israel continuing to strike targets in Lebanon and Iran’s Revolutionary Guard warning that unauthorised ships will be attacked in the Strait of Hormuz.

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