- FTSE 100 closes up 27 at 7.725
- AstraZeneca buys Gracell for US$1.2bn
- Retailers off on mixed Boxing Day footfall reports
FTSE 100 posts sold gains, Budget to be 6 March
FTSE 100 closed comfortably in the black but short of the gains seen early in the trading day.
The index closed up 27 at 7,725 with a lack of company news causing the late drift as much as anything.
US markets were edging higher as trading went on having opened flat, but like in the UK, there seemed little conviction.
UK Chancellor Jeremy Hunt, meanwhile, has confirmed his next Budget will be on 6 March and will be a tax-cutting affair according to reports today.
Inheritance tax could be scrapped, first-time buyers get help and income tax thresholds raised substantially if the stories are accurate.
Could it mean an early election, Labour reportedly are taking no chances despite their massive lead in the polls.
15.05: FTSE 100 gains clipped on flat US opening
All of the action of on FTSE 100 seemingly happened this morning with the index largely marking time since.
Heading toward the close, the index was up 33 at 7,731 with a flat Wall Street adding to the idea that trading is just ticking over until everyone is back at work next week.
AstraZeneca's acquisition of Gracell for US$1.2bn comfortably remained the deal of the day in London, though Aviva had a late bit of good news.
The life insurer said it will get £80 million more than expected from the exit of its SingLife venture in Singapore with proceeds now to total £930m.
Investors presumably will expect some of that extra cash to come their way but Aviva said it is also considering bolt-on M&A or reinvesting in its ongoing businesses.
Shares rose 0.4% to 432.6p.
13.40: Market Movers
The FTSE 100 has edged higher on its early gains and is up around 47 points at 7.745.
Risers:
WH Ireland Group PLC is up around 20% at 4.2p after it gave a ray of hope to London’s becalmed capital markets.
It said activity has ticked up as it recently completed some of its largest fundraisings for... read more here
Horizonte Minerals PLC rallied more than 38% higher at 10.8p after agreeing to a US$20 million interim funding package provided by Orion, Glencore and... read more here
Fallers
Tern PLC dropped 17% to 3.5p as it said its stake in cyber security business Device Authority had fallen substantially in value... read more here
12.55: Footsie solid ahead of US opening
London’s blue chips look to be heading for their first real test of the day with US markets expected to open lower.
Early spread bet guidance is for a subdued start after the S&P 500 came close to a new all-time high overnight.
A lack of any significant data today might also cap any big moves, said traders, as well some profit tracking after a fantastic quarter for US stocks.
The S&P is on track for its best quarterly gain in three years with the Dow and Nasdaq similarly impressive.
Having hit the bear market threshold in October 2022, it has been upwards all the way since.
"Once the Santa high fades, the hangover will hit," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
FTSE 100 was up 44 at 7,741.
11.45 am FTSE 100 keeps steady as small caps start to rally
FTSE 100 stocks are keeping strong heading towards lunch, with the index up around 42 points at 7,739.
In small caps, AIM-listed group Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF) rallied 33% higher after agreeing to a US$20 million interim funding package provided by Orion, Glencore and La Mancha.
In a statement, Horizonte said the funding package is expected to provide liquidity while a full funding package is worked out for its Araguaia nickel project in Brazil.
The mining group isn't the only AIM-listed firm to experience bumper gains in 2023.
Proactive looked a some of the top small-cap winners of the year, in which a busy 12 months of mergers and acquisitions helped boost everything from technology companies to chocolate makers.
In commodities, Brent crude oil prices have fallen around 0.7% to US$80.52, natural gas has jumped close to 4.5% to US$2.664, while gold is up 1% this week at £1,624.10.
10.50 am Retailers unsettled by Boxing Day reports
London’s blue chips have settled down after early gains but it is still a good day overall so far.
At mid-morning the index was up 42 at 7,739, or more or less when it has been since the start,
Retailers were a weak spot following reports that Boxing Day sales had seen less footfall than in previous years.
A report from MRI Software suggested shopper numbers were down by around a fifth compared to a year ago across the country with only central London seeing an increase.
International shoppers were behind that, according to another report, with the locals still hunkering down and consumer confidence weak.
Marks and Spencer edged 0.2% lower to 271.5p, Next was 0.4% down to 8,174p and Frasers flat at 922.5p.
9.54 am FTSE 100 keeps early gains, top tech trusts revealed
FTSE 100 has kept its early morning gains, up 41 points at 7,738, with shares in BT, Vodafone and Pearson all down more than 1%.
‘’The FTSE 100 has risen from its Christmas slumber with gains in early trade as positivity pulses through financial markets. There are hopes of a soft landing for the US as inflationary forces slow, borrowing costs are forecast to drop and consumers remain resilient," Susannah Streeter at Hargreaves Lansdown said.
Anglo American continues its earlier gains as the FTSE's leading riser, up over 3%, while Ocado, Entain and Rentokil have all jumped over 2%.
Scottish Mortgage Trust has also lifted 1.63% higher, helping the tech-weighted trust, which top holdings include Nvidia and Amazon, lift more than 11% in the year-to-date.
British trusts which have relied on tech companies, particularly across the Atlantic, have experienced some tasty gains in 2023, including Manchester & London which was up 60% in 2023.
As the year draws to a close, Proactive has dived into the portfolios of the trusts with significant weighting to the so-called ‘Magnificent Seven’ tech stocks to analyse some of the best and worst performers.
9.01 am FTSE 100 opens brightly, AstraZeneca splashes out
London blue chips made a good start to the no-man’s land period between Christmas and New Year, adding 46 points to 7,743.
Miners and tech-focused groups were pulling the index higher led by Anglo American, which continues to recover from it shock production warning, gold miner Endeavour and specialist tech investor Scottish Mortgage Trust.
Reports that shipping giant Maersk is to resume trade through the Red Sea after an international intervention to make the key shipping corridor safe from attacks by Iran-backed Houthi rebels in Yemen also gave the market a boost.
News is at a premium, even so, with AstraZeneca’s US$1.2bn move for US-listed but China-based Gracell the standout.
The UK pharma is paying an 86% premium to the last market price, so the deal can’t be described as cheap, but cancer and autoimmune developments in the area Gracell specialises are becoming increasingly significant according to broker Jefferies.
“We think the deal recognizes the potential differentiation of FastCAR based dual-CART GC012F (BCMA x CD19) in multiple myeloma as well as in autoimmune diseases, along with next-day manufacturing technology.
“The acquisition of GRCL should complement AZN’s existing capabilities and previous investments in cell therapy including CLLS, Neogene and AbelZeta.”
Asta Zeneca was up 1.4% at 10,585p, Anglo American 3.5% at 1,999p and Endeavour 2% at 1,822p.
7.31am FTSE 100 to open brightly, AstraZeneca makes US$1bn purchase
FTSE 100 was set for a decent opening as the market in London resumed trading after the Christmas break.
Spread bet firms suggested Footsie might open as much as 40 points higher at 7,748 after decent showings in Asia and the US overnight.
Hopes that US interest rates have peaked were again the drivers, having already led to substantial gains in the run-up to the break.
On Wall Street, the S&P 500 briefly touched its highest level for almost two years and 22 points from its all-time high, while the other two major indices are set to close 2023 substantially higher than where they started.
In Asia, the blue-chip indices in Tokyo and Hong Kong were both up more than 1%.
Company news in London is light, though pharma giant AstraZeneca is to buy Nasdaq-listed cancer and autoimmune diseases drug developer Gracell for US$1.2 billion, an 86% premium to the last closing value for the China-based group.