As panic over US stock market crash eases, global markets are turning around after a sharp drop earlier this week

The FTSE 100 rose as global markets recovered after a sharp sell-off earlier this week sparked by fears over a US recession and tensions in the Middle East.

The blue-chip index rose 1.75 percent, or 140.19 points, to 8,166.88 as the Bank of Japan dampened talk of further interest rate hikes. Last week, the central bank raised rates for the second time in 17 years.

“As we are seeing strong volatility in domestic and international financial markets, it is necessary to maintain the current levels of monetary easing,” said Shinichi Uchida, deputy governor of the Bank.

“We will not raise interest rates when markets are unstable.” On the other hand, the revised figures showed that the UK economy recovered from the pandemic more quickly than previously thought.

The Office for National Statistics has updated GDP growth in 2022 from 4.3 percent to 4.8 percent.

That was accompanied by improved forecasts for transportation and professional and business support services that year, while manufacturing and health care headed in the opposite direction.

Data from Halifax show house prices rose 0.8% in July, after three relatively stable months. The average price is £291,268, up more than £2,200 on the previous month.

Halifax mortgages chief Amanda Bryden said the Bank of England’s interest rate cut last week was “encouraging for those looking to refinance their mortgage, buy a first home or get on the property ladder”.

Last week the Bank cut interest rates from 5.25 percent to 5 percent for the first time in four years.

Bryden said: “We anticipate prices will continue on a modest upward trend for the remainder of this year.”