London close: Market recoups previous session's losses

The FTSE 100 experienced few surprises and gained steadily throughout the day, closing 1.24% higher at 7,034.9.
The index had plunged 1.2% on Tuesday as a stronger dollar sent commodity prices tumbling - and subsequently mining and oil stocks.

With little in the way of data, sentiment was mostly inward-looking as traders looked to recoup, although gains were pared by continued Greek uncertainty.

The Queen's speech delivered few surprises, focusing on continued economic stability and an all-clear for a referendum on Britain's EU membership.

"[The government] will continue the work of bringing the public finances under control and reducing the deficit, so Britain lives within its means. Measures will be introduced to raise the productive potential economy and increase living standards," Her Majesty said.

The majority of businesses remain hopeful that the referendum will be brought forward to 2016, following the suggestion from Prime Minister David Cameron last week.

Terry Scuoler chief executive officer of manufacturers' association the EEF said: "The key thing now is to get on with the referendum as soon as feasibly possible, and certainly before the end of 2016, so that we can limit the potential fallout for business and investment certainty.”

Oil markets took a tumble with Brent Crude down 1.77% to $62.59 a barrel, driving oil and energy stocks lower, including Premier Oil, Ophir Energy and Infinis Energy. Another note from Credit Suisse warned investors to expect near-term weakening in the sector.

Shares in building materials group CRH surged after finally entering into a binding offer with European cement giants Holcim and Lafarge to buy assets worth €6.5bn as part of their proposed merger.

Others in the building and construction sectors also ended higher, including Ashtead, Travis Perkins, Wolseley and Persimmon.

Imperial Tobacco gained after being given the green light by US trade regulators for its $4.7bn asset purchase from the merging Lorillard and Reynolds. The deal, which still must clear some smaller legal hurdles, is expected to complete within weeks.

IAG was lifted by news that the Irish government agreed to sell its 25% stake in Aer Lingus, allowing the British Airways owner to officially launch its €1.36bn bid for the Irish airline.

Meanwhile, engineer Weir Group was in the red after being hit with a downgrade to 'hold' by analysts at Deutsche Bank.

Market Movers
techMARK 3,323.39 +1.20%
FTSE 100 7,034.90 +1.24%
FTSE 250 18,234.52 +0.75%

FTSE 100 - Risers
CRH (CRH) 1,840.00p +3.60%
International Consolidated Airlines Group SA (CDI) (IAG) 564.00p +3.58%
Imperial Tobacco Group (IMT) 3,392.00p +3.29%
Ashtead Group (AHT) 1,217.00p +2.79%
Centrica (CNA) 280.70p +2.75%
easyJet (EZJ) 1,660.00p +2.72%
National Grid (NG.) 929.80p +2.68%
Shire Plc (SHP) 5,640.00p +2.55%
Johnson Matthey (JMAT) 3,538.00p +2.49%
Smith & Nephew (SN.) 1,168.00p +2.46%

FTSE 100 - Fallers
Glencore (GLEN) 287.20p -0.88%
Old Mutual (OML) 229.00p -0.87%
SABMiller (SAB) 3,530.50p -0.76%
Sainsbury (J) (SBRY) 255.10p -0.47%
Weir Group (WEIR) 1,994.00p -0.40%

FTSE 250 - Risers
Beazley (BEZ) 302.50p +6.85%
Hiscox Limited (CDI) (HSX) 865.00p +3.97%
Hansteen Holdings (HSTN) 123.30p +3.70%
RPS Group (RPS) 232.40p +3.47%
Kaz Minerals (KAZ) 249.80p +3.35%
Fidessa Group (FDSA) 2,265.00p +3.33%
Cineworld Group (CINE) 520.00p +3.17%
Keller Group (KLR) 1,059.00p +3.12%
Moneysupermarket.com Group (MONY) 304.00p +3.05%
Zoopla Property Group (WI) (ZPLA) 240.40p +3.04%

FTSE 250 - Fallers
Synergy Health (SYR) 1,808.00p -16.45%
Brewin Dolphin Holdings (BRW) 315.10p -10.71%
De La Rue (DLAR) 507.00p -8.40%
PZ Cussons (PZC) 358.50p -2.71%
Vesuvius (VSVS) 438.40p -2.47%
BBA Aviation (BBA) 333.30p -2.40%
Fidelity China Special Situations (FCSS) 173.90p -1.92%
Poundland Group (PLND) 313.70p -1.75%
Premier Oil (PMO) 156.30p -1.64%
AO World (AO.) 174.20p -1.53%