Market round-up: Market erases losses as confidence returns with strong US GDP data

The Dow Jones industrials average is displayed on a board after surpassing 17,000 on the floor of the New York Stock Exchange July 3, 2014. The Dow industrials broke above the 17,000 milestone on Thursday and the S&P 500 came within 1 percent of piercing — The Dow Jones industrials average is displayed on a board on the floor of the New York Stock Exchange July 3, 2014. Reuters

Strong US gross domestic product growth lifted the FTSE 100 out of the doldrums on Thursday (27 August), rebuilding confidence after a punishing week of ups and downs in which the market was hit by its worst day of trading in 2015.

Chinese shares closed up 5% and the Dow Jones posted its biggest gain in almost four years. All the positive signs spurred on the London stock exchange too.

"Investors' nerves were soothed by the rise in China's stocks and the bounce in US markets after Federal Reserve official William Dudley claimed the case for an interest rate rise next month now seemed less compelling," said AJ Bell Investment Director Russ Mould.

The FTSE 100 was up 3.56% to 6,192.03 at the close of trade on 27 August. Only one stock failed to make gains and the mining companies that have felt the impact of weak Chinese commodity demand made the biggest gains – Anglo American, BHP Billiton, and Antofagasta rose to the top of the blue-chip leaderboard.

Atlantic Coal's shares soared after it swung into profit in the first half despite challenging global market conditions and the closure of its Stockton mine in Pennsylvania for 16 days in the first quarter for refurbishment and improvements.

Heading in the opposite direction was gene and cell therapy group Oxford BioMedica after net losses widened in the first half, despite encouraging progress on its pipeline.

FTSE 100 biggest risers