FTSE bounces back

The FTSE rallied yesterday after the initial shock of the London bombings.

11:04 08 July 2005

The City of London recovered late yesterday after the initial shock of the Tube and bus bombings.

In the hours immediately after the explosions the FTSE fell by almost 200 points as traders dumped sensitive stocks.

Airlines and hotels were among those who suffered as investors shied away from companies likely to be affected. More than 40 billion was wiped of the value of UK-listed shares.

But as the emergency services got the situation under control and London began to get moving again, the shares rallied with the FTSE closing just 70 points short of the opening level.

This morning the share index was up by 40 points after opening on 5,200.1.

The London Metal Exchange is closed today because it is located in one of the areas cordoned off by police.

The Tube network is running again this morning after being shut down yesterday. London is however quieter than on a normal working Friday with many people taking the advice of the police and staying at home.