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FTSE 100 marks longest record-breaking rally in history

Last updated: 17:30 10 Jan 2017 GMT, First published: 06:00 10 Jan 2017 GMT

Stock market traders

The FTSE 100 index has closed at a record high for the ninth day in a row on Tuesday, the longest such stretch in history, as the bourse got a boost from a weaker home currency.

The gains came as the Nasdaq Composite in New York also ramped up another multi-day record high early in the Wall Street session.

The FTSE 100 closed up 0.5% at 7,275, having hit an intraday record high of 7.284.81 minutes earlier.

The decline in the pound since the Brexit referendum in June has lifted mostly blue-chip FTSE 100 stocks, as many of its constituents make much of their profit overseas.

Top gainers included miners and supermarket shares.

Anglo-American (LON:AAL) ended up 7.2% at 1237.5p. Meanwhile, supermarket shares were boosted by Morrisons' (LON:MRW) strong Christmas sales. Morrison shares closed up 3.6% to 246p.

Giving hope to other supermarkets, the news lifted shares in Tesco, which rose 6% to 213p.

The FTSE 250 midcaps closed up 0.2% at 18,413 and led by Nostrum Oil & Gas PLC (LON:NOG) up 10.8% to 489.3p.

The FTSE AIM 100 Index rose 0.3% to 4170 and the FTSE AIM All-Share Index up 0.3% to 869.

London’s gainers amounted to 37% of the bourse and losers to 30%.


1515 GMT - FTSE 100 strong, but off new highs as US stocks start mixed

  • FTSE 100 ahead 24 points a 7,262, off earlier peak

  • US stocks mixed early on as Trump press conference eyed

  • Pound set for worst three-day run since October

  • Miners and supermarkets set the pace

3.15pm … Record run continues  …

The Footsie slipped from the fresh record highs hit earlier today but remained strong in late afternoon trading despite early weakness from US blue chips.

By 3pm, the FTSE 100 index was up around 24 points at 7,262, easing back from the day’s all-time peak of 7,277.35 but still set to extend its longest run of record gains.

Neil Wilson, senior market analyst at ETX Capital, said: “Another day, another fresh high for the FTSE. The blue chip index continues to power on and is on track to notch up its 8th straight record close and secure its best run in 33 years.”

But US stocks were mixed in early trading in New York, with the blue chip Dow Jones down around 27 points at 19,860, but the tech-laden Nasdaq composite edging up 2 points at 5,533.

US investors were cautious ahead of Donald Trump's first news conference in months, with the President-elect’s words to be scoured for any indication as to his legislative priorities ten days ahead of his inauguration.

Recent stock market gains have been fueled by Trump's election, as investors anticipate that the policies he is expected to pursue will accelerate US economic growth.

On currency markets, the dollar remained predominant, with sterling down another 0.1% versus the greenback at US$1.2159 and set for its worst three-day run since October.

Bank in London, ETX’s Wilson said: “Buoyed by sterling weakness, the big miners are providing the juice for the rise, with Anglo American up 6%, Rio Tinto climbing 5% and BHP Billiton up 4%.

“The other main risers are supermarkets Tesco and Morrisons after the latter’s Christmas trading update beat expectations.”

12.30pm ... Full stead ahead ...

US markets are expected to open higher, encouraging the FTSE 100 to develop a head of steam.

The FTSE 100 index was up 33 at its high for the day, 7,271.

“The FTSE 100 is continuing its steady climb, driven by the lower pound. Unsurprisingly it’s miners leading the way,” noted Nicholas Hyett, an equity analyst at Hargreaves Lansdown.

“The sector is receiving further help from strong commodity prices, with iron ore up today,” he added.

In the exciting world of … er … fund management, Prospect Japan Fund Limited (LON:PJF) saw its market value increase by more than a quarter on news its investment manager, Prospect, is mulling making an offer at a substantial premium to last night’s closing share price.

Also high in the sky was Cloudcall Group PLC (LON:CALL), up 22% at 78.5p after a trading update.

Revenues were up by 50% year-on-year to £4.9mln in 2016 with recurring revenue 63% higher at the customer relations software provider.

Recurring sales growth picked up in the second half, while churn levels fell to a record low.

Employee benefits specialist Personal Group Holdings plc (LON:PGH) was down 4% after its trading update, which revealed some customers had delayed contract decisions pending the outcome of a decision by the taxman on its salary sacrifice policies.

10.30am ... Footsie flat despite cheery grocers ..

FTSE 100 consolidated with a four point gain to 7,242 after the new record high notched up last night.

Grocer Morrisons (LON:MRW) was the standout blue-chip after its best Christmas for sales in years, but Tesco (LON:TSCO) and Sainsbury's were also going well in anticipation of their updates later this week.

Tesco was also boosted by a Kantar Worldpanel report that showed it recorded the fastest sales growth of the UK ‘Big Four’ players in the last quarter.

Its growth of 1.3% over the 12 weeks to January 1 outperformed Morrisons’ 1.2%, while J Sainsbury PLC (LON:SBRY) saw its sales fall 0.1%, and Asda – owned by US retail giant Wal-Mart Inc (NYSE:WMRT) – recorded a 2.4% decline.

Kantar also noted a return of food price inflation after more than two years of falling costs, with its data showing underlying grocery prices rose by 0.2 percentage points

Morrisons' shares rose 4.2% to 247.3p, Tesco added 3.99% to 208.8p while Sainsbury's was 1.6% higher.

Whitbread PLC (LON:WTB) was a riser after a Credit Suisse upped its price target to 4,550p from 4,030p.

Tullow Oil PLC (LON:TLW) was off the pace after the sharp gains seen yesterday following a US$900mln deal with Total to sell a stake in a Uganda oil project.

Only US$100mln of the deal comes in up-front cash, which doesn’t really touch Tullow’s debt pile, but a US$700mln commitment for future development spending does relieve the need for further financing.

Shares in the oiler dropped 1.6% to 328.2p.

Newspapers group Trinity Mirror PLC (LON:TNI) – which owns the Daily Mirror and Sunday Mirror national titles - confirmed early talks with privately-owned Northern & Shell, the group that owns the Daily Express, Sunday Express and the Daily Star titles, over a deal that could see it take a stake in the rival papers. Shares were flat at 97.7p.

Among the small caps, Roxi Petroleum (LON:RXP) was a hefty faller after a disappointing well result in Kazakhstan, but CRM software specialist Cloudcall PLC (LON:CALL) jumped 23% to 79p on a bullish trading update.

8.45am ... FTSE 100 coaxed higher by the grocers ..

The FTSE 100 made a subdued start to trade coaxed higher by the grocers.

At 8.45am, the index of blue chip shares was up 10 points at 7,247.8.

William Morrison Supermarkets PLC (LON:MRW) topped the leader board after delivering its strongest Christmas sales performance in seven years.

The positive showing suggested the Bradford-based food retailer is winning the battle against German discount chains Aldi and Lidl, which have drawn the sector into a price war.

The Morrisons update also lifted Tesco PLC (LON:TSCO) and J Sainsbury (LON:SBRY), which update later this week.

“With figures from the BRC painting a positive picture for food sales across the country, hopes will be high that both can follow suit and deliver more positive numbers,” said George Salmon of the investment firm Hargreaves Lansdown.

Mining and travel-related stocks were also in demand Tuesday, while the insurance sector was being heavily sold off early on.

Dropping down to the mid-caps and Just Eat’s (LON:JE.) trading update failed to pass muster as the stock dropped 6% in early deals.

6.45am ... Quiet start predicted ... 

The top-share index is set to take a small step forward at the outset after closing at another high yesterday.

Spread betting quotes point to the FTSE 100 index opening up at around 7,240, up three points from last night’s close.

US indices were mixed last night, with the tech-heavy Nasdaq Composite rising 11 points to a new high of 5,532, while the S&P 500 fell eight points to 2,269 and the Dow Jones average tumbled 76 points to 19,887.

Just ahead of the close in Tokyo, the Nikkei 225 was 149 points in the hole at 19,307.

In Hong Kong, the Hang Seng was up 125 at 22,683.

In the UK, it is time for the retailers to put their cards on the table and reveal haw they fared over Christmas.

Wm Morrison Supermarkets PLC (LON:MRW) kicks off the food retail sector’s Christmas trading update season today.

The efforts of new management at Yorkshire-based Morrisons have looked to be paying off recently, with the firm seeing rising sales growth in 2016, which investors hope will have continued over Christmas and the New Year.

The company delivered like-for-like (LFL) year-on-year sales growth of +1.6% in the third quarter and, although it faces tougher comparatives for the Christmas period, analysts at Barclays predict a positive outcome.

They expect Morrisons to deliver like-for-like sales growth of +0.5% for the nine week period, with the latter weeks to be slightly less strong than the earlier weeks.

The Christmas trading period is no less important for Majestic Wine PLC (LON:WINE), which is another retailer adapting to life under fairly new management.

Analysts at Peel Hunt pointed out that market forecasts for Majestic suggest expectations of a very strong Christmas.

They noted that “in order to deliver full-year estimates, core retail LFL will have to be over 6% in H2, against a stiff comparative.”

“That is far from impossible, as availability should improve and customer loyalty has also been increasing”.

Around the markets

  • Sterling: US$1.2151, down 0.11 cents
  • Gilts 10 year yield: 1.424%
  • Gold: US$1,184.80 an ounce, up 10 cents
  • Brent crude: US$55.03 a barrel, up nine cents

Headlines

  • General Motors defies Trump and heads over the border to Mexico – The Times
  • BMW ‘commits’ to Mexico car plant despite Trump’s border tax threats – The Independent
  • Rolls-Royce motor cars boss pledges future in UK despite Brexit qualms – The Guardian
  • Fewer retailers go bust in 2016 – The Times
  • Aldi reports record Christmas sales – The Independent
  • Tesco to axe 1,000 jobs as it shuts distribution centres – Daily Telegraph
  • IG Group shrugs off fears over French online trading rules – Financial Times
  • Matalan soothes jitters over prospects after boosting earnings – Daily Telegraph
  • Mike Ashley criticises shareholders of Sports Direct over Keith Hellawell – The Guardian
  • Pound slumps to lowest level in months after May’s Brexit hint – Daily Mail

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