London’s blue-chip stocks soared higher on Thursday as markets across Europe were on the up.
The European Central Bank’s Peter Praet hinted to investors that another quantitative easing injection could be on its way.
The biggest gainer in Europe was the German Dax, which climbed 1.5% or 169 to 11,130 while the French Cac40 was 37 points higher to 4,945.
Looking ahead to the US, shares are poised to continue the momentum today after traders were buoyed on Wednesday at the prospect of a December rate rise.
Market commentators said the minutes signalled increased potential for a December rate hike, but left the door ajar for further delay.
Meanwhile, “a disappointing, but year-on-year trend-matching, fall in October retail sales couldn’t deter the FTSE100,” Connor Campbell at Spreadex said.
The index jumped around 80 points to 6,360 on Thursday led by catalytic converter group Johnson Matthey (LON:JMAT).
Johnson said its emission control technologies (ECT) arm had boosted sales by 8% and underlying operating profit by 16%, despite the Volkswagen scandal.
This was topped by the news it will be hiking the interim dividend by 5% to 19.5p and issuing a special dividend of 150p, totalling £305mln after selling businesses including its precious metal division.
Shares were some 9.1% higher, making it by far the index’s biggest riser.
Another notable riser was Royal Mail (LON:RMG), which gained 4.6% to 475p despite reporting lower first-half profits.
The letter and parcel courier projected an increased level of cost cuts as it continues to operate in a tough market.
The key period for the company will be over Christmas, with us all sending cards to our loved ones.
On the slide were homebuilders, despite The Council of Mortgage Lenders reporting an 18.7% year-on-year rise in gross mortgage lending in October.
House builder Bovis Homes (LON:BVS) blamed planning delays on new building sites for a profit warning today, sending shares 8%, or 80p, lower to 909p.
The news had a ripple effect on other builders, with Berkeley (LON:BKG) losing 1.6%, or 50p, to 3,089p.
In the midcap space, Poundland (LON:PLND), which recently acquired rival 99p Stores, reported like-for-like sales were down 2.8%.
Earning and profits tumbled, as did its share price, which was 18% to 50p lower at lunch to 228p.
In the small cap arena, ECR Minerals (LON:ECR), became the latest entrant in resource investor Metal Tiger’s (LON:MTR) portfolio of mining juniors yesterday.
Metal Tiger is to subscribe for shares at 0.02p a pop. Shares climbed 17.3% to 0.03p.
Elsewhere, Orosur Mining (LON:OMI, CVE:OMI), pleased shareholders with assurances that of the 7mln shares the board was authorised to issue at yesterday's AGM, no more than half will be issued to officers and directors of the company in lieu of salaries and fees. Shares climbed 20.9% to 6.8p.
Conversely, regional newspaper publisher Johnston Press (LON:JPR) reported revenues down 10.8%, print advertising revenues down 14.7% and digital revenues up an underlying 8.4% in the 17 weeks to the end of October. Unsurprisingly, shares were also down, losing 11.8% to 46p.