FTSE 100 shares ended higher on Tuesday thanks to a trio of miners, further lifted by Wall Street marking a flurry of record highs, and the Dow Jones Industrial Average spiking above 19,000 for the first time.
The Dow hit a record 19,014.73 intraday.
The blue-chip FTSE 100 index closed up 0.6% at 6819 and led by Anglo American (LON:AAL) up 7.1% to 1202.25p, Glencore (LON:GLEN) up 5.6% to 283.18p and BHP Billiton (LON:BLT) up 5.2% to 1338.25p, after commodity prices continued to pick up.
On Monday, Anglo American said it was willing to put its disposal programme on hold following a dramatic rebound in commodity prices this year. Anglo told analysts during a visit to platinum and diamond mines in South Africa and Botswana that it was prepared to hang on to assets previously deemed non-core, and run them for cash — unless it receives the “right” offers.
Meanwhile, the mid-cap FTSE 250 index closed 0.9% higher at 17,679 and led by Rotork plc (LON:ROR), up 13% to 226.7p after the actuator maker announced it expected full year sales will be towards the top end of expectations due to a currency tailwind and a good performance from its acquisitions.
Among the small-caps, the FTSE AIM 100 index closed up 0.3% at 3913 and led by lottery ticker vendor BNN Technology plc (LON:BNN) up 9.8% to 129.01p.
The FTSE AIM All-Share Index ended up 0.3% at 816.
Across the London bourse, the gainers had one of their best days this year, as 40% of stocks rose while only 24% lost.
Late session
Dow hits new record
First time ever above 19,000
Footsie at an 12-day high
The Dow Jones smashed through the 19,000-mark for the first time ever as Wall Street continued its phenomenal post-election run.
Over on this side of the Pond things were similarly upbeat as the FTSE 100 clambered above 6,800 (to 6,832) for a 53 point rise. That represented a 12-day high for the index of blue-chip shares. The Dow Jones rose 46 points at 19,000.57.
“Though it has only managed a 0.2% to 0.3% rise after the bell that was all it took to take the US index above that landmark level, a price is has teased ever since its initial rampage post-election,” said Connor Campbell of Spreadex.
“As to what is actually sending it higher despite the dollar taking half a percent back off the pound, it seems that Trump’s promise to exit the Trans-Pacific Partnership agreement might have caused investors to cheer the potential safe-guarding of jobs in the US (whether or not that will be the result is another discussion altogether).”
Among the UK mid-caps the stand-out performer was BGEO Group, the Georgian banking group, which benefiited from an upbeat broker circular.
13:00 ... Oil prices rise on OPEC expectations
Crude oil prices picked up again, with Brent heading back above US$49 on the eve on a pivotal meeting of OPEC members next week.
Brent crude was up 0.4% to trade at US$49.10 per barrel in London, while West Texas Intermediary futures moved up slightly to around US$48.30.
Deutsche Bank says it is likely that OPEC will agree a freeze, which would see cartel output between 32.5 to 33 mln barrels per day, though it also reckons it likely that compliance will both be difficult to achieve and also doubted by the market.
The German bank also looked at the potential upsides and downsides is the meeting throws up something unexpected.
12:20 ... FTSE 100 consolidating early gains
After opening sharply higher the FTSE 100 has traded sideways for the last three hours or so.
At midday, the blue-chip index was up 64 points at 6,842, some nine points below its intra-day high.
Miners continue to do much of the heavy lifting, as metal prices increase.
Generic drugs maker Hikma Pharmaceuticals PLC (LON:HIK) hardened 1.7% after signing a development and licensing agreement with Vectura Group PLC (LON:VEC) for its generic salmeterol product (VR730).
Mid-cap entertainment media rights owner Entertainment One Ltd (LON:ETO) failed to bring home the bacon with its interims.
The Peppa Pig owner’s shares slumped 11% as normalised profit before tax fell to £23.8mln, well below the £37.5mlon expected by City broker Numis Securities.
Among the small caps, aerial platforms provider Lavendon Group plc (LON:LVD) was lifted 39% to 193.32p by a 205p a share cash bid from Belgian peer TVH.
10.52 ... Big names disappoint with trading updates
Just over a dozen FTSE 100 constituents are in the red on what is otherwise a strong showing by blue-chips.
Coming up to 10.30, the Footsie was up 65 points at 6,843, despite some underwhelming trading statements from the big guns this morning.
Contract caterer Compass Group PLC (LON:CPG) headed south after half-baked full-year results.
The shares shed 5.5% despite the company reporting a 7.8% increase in underlying earnings per share.
“Compass are to some extent suffering from the curse of being a well-run business with a great track record. People have high expectations. A strong performance in North America and currency tailwinds have boosted Compass’s results in the second half; however, a weaker than expected fourth quarter and flat margins have still sent the shares down in early trading,” said Nicholas Hyett, an equity analyst at Hargreaves Lansdown.
Babcock International Group PLC (LON:BAB) surrendered 4.3% at 948.5p after its interims underwhelmed. The engineer rustled up a 7% increase in underlying profit before tax at £228.4mln, and the order book was stable, but there was some concern over the rising pension deficit and a weaker-than-expected performance from the Defence & Security arms.
DIY retailer Kingfisher PLC (LON:KGF) dipped, as Kingfishers are wont to do, after it reported underlying sales up 1.8% to just under £3bn in the three ended October, which compared with a 3% increase the quarter before. The shares fell 2.9% to 359.1p.
8.44...Miners lead the advance
After a rather tepid start to the week the FTSE 100 opened strongly higher and back above 6,800 in the first half hour of trade.
Possibly taking its cue from Wall Street (which hit a new high overnight) and definitely led forward by the miners, the index of blue chip shares opened its account 55 points to the good at 6,832.93.
A weather eye will be kept on the UK public finance data followed by the CBI’s distributive trends update, which will tell us how the domestic economy is faring almost five months on from the Brexit vote.
6.45am...brighter start predicted
The FTSE 100 is tipped to show healthy gains at the outset, encouraged by US benchmarks closing at new highs last night.
Spread betting quotes indicate the top-share index will open almost 40 points higher at 6,814 after a good showing from US stocks overnight.
Stateside, the S&P 500 piled on 16 points at 18,956 while the Dow Jones rose 89 points to 18,957.
Asian stocks this morning were also on the march, with the Hang Seng index in Hong Kong the pick of the bunch, up 318 points at 22,676. In Tokyo, the Nikkei 225‘s performance was a bit more pedestrian, up 52 points at 18,158.
Closer to home, B&Q owner Kingfisher PLC (LON:KGF) will be a highlight of Tuesday Morning’s stock market updates.
It’s not necessarily the first retailer to spring to mind in a week where the sector and its investors are preoccupied with Black Friday sales and pre-Christmas advertising – nonetheless trees, lights and decorations are still a staple of festive preparations.
Attention will likely focus on the group’s ongoing repositioning under chief executive Veronique Laury.
As with the rest of the sector investors will also want insights regarding the foreign exchange impacts following the summer’s Brexit vote.
Credit Suisse recently raised its target price for Compass Group PLC (LON:CPG) from 1,575p to 1,770p ahead of the contract caterer's results today.
“Updating again for further sterling weakness drives an underlying 6% EPS [earnings per share] increase on the translation of overseas profits (the UK was only 11% of group revenue in 2015). In addition, this has enhanced the available excess cash flow and hence we have increased the scale of share buy-backs in our model meaning our FY18E EPS increases 8%,” the Swiss bank said.
Around the markets
- Oil: Brent crude US$48.84 a barrel, up 62 cents
- Gold: US$1,217.60 an ounce, up US$7.90
- Gilts - 10-year yield: 1.306%
- Sterling: US$1.2491, down 0.02 cents
Headlines
- Loganair and Flybe contract grounded - The Times
- Sterling slump means higher deposit protection guarantees for savers - The Independent
- ExxonMobil and Chevron near bottom of league on ‘green’ strategy - Financial Times
- EU to retaliate against US bank capital rules - Financial Times
- Hema targets British bargain hunters as Dutch 'posh Poundland' branches out - The Daily Telegraph
- May hints at transition deal on Brexit to avoid 'cliff edge' for business - The Guardian
- George the bear seeks new followers as Hofmeister lager returns - The Guardian
- Fears Philip Hammond will launch workers tax raid in Autumn Statement - Daily Express
- Legal & General in advanced talks to sell Dutch operations to Chesnara - City AM