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FTSE stages modest rebound after global sell-off

FTSE stages modest rebound after global sell-off
FILE PHOTO: A worker shelters from the rain under a Union Flag umbrella as he passes the London Stock Exchange in London, Britain, October 1, 2008. REUTERS/Toby Melville/File Photo   -   Copyright  Toby Melville(Reuters)
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By Julien Ponthus and Helen Reid

LONDON (Reuters) – UK shares staged a modest recovery on Friday after a broad sell-off and a burst of volatility hit stock markets across the globe, amid worries about protectionism and fast-rising U.S. interest rates.

The FTSE 100 <.FTSE>, down about 6 percent since the beginning of October, was up 0.6 percent by 0835 GMT but still trading at levels not seen since last April. A number of European benchmarks suffered heavier losses from the biggest market shakeout since February.

“As far as U.K. markets are concerned, we appear to have stabilised well above the lows of the year, unlike the German DAX, which fell to its lowest levels since the end of December 2016 yesterday before rebounding”, Michael Hewson, an analyst at CMC Markets, told his clients.

Tobacco stocks Imperial Brands <IMB.L> and British American Tobacco <BATS.L> were the biggest drag on the index, down after reports of possible further restriction on vaping products.

“Over the last few years, my weighting towards tobacco has only gone down. I’m trying to quit but I still have an investment”, said Eric Moore, income fund manager at Miton in London.

Ashmore <ASHM.L> rose 1.5 percent after the emerging- markets-focused fund manager said assets under management rose 3 percent in its first quarter, boosted by inflows of client cash, market gains and acquired assets.

British hedge fund Man Group’s <EMG.L> rose 1.9 percent after it reported that funds under management rose 0.4 percent in the third quarter.

Sports Direct <SPD.L> the sportswear group controlled by retail tycoon Mike Ashley, rose 1.5 percent after its agreed to buy the freehold of the Frasers department store in Glasgow for 95 million pounds ($125.7 million), it said on Friday.

Shares in Patisserie Holdings <CAKEP.L> which warned on Thursday that it was in danger of collapse if it could not raise capital, were suspended.

Finance director Chris Marsh was arrested by the police on Thursday night and had been released on bail [nL4N1WS3DN].

(Reporting by Julien Ponthus, editing by Larry King)

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