FTSE 100 hits fresh record high close and intraday levels
Miners gain
Pound down versus US dollar at $1.2170
FTSE 100 stocks closed at a record high on Monday, extending from its feat last week, as it marked the eighth successive record peak, largely thanks to a weakening pound.
The blue-chip ticker ended up 0.4% at 7237 and just off an intraday record high of 7,243.76.
A weaker pound boosts the profits of the many multinational companies listed on the FTSE 100 when their foreign earnings are converted into pounds.
The pound's sharp fall was provoked by comments on Brexit made on Sunday by the Prime Minister, Theresa May.
She rejected the idea that the UK could "keep bits of membership" of the EU, raising the prospect of a so-called "hard Brexit".
That sent the pound down against a broad range of currencies.
Miners Glencore (LON:GLEN) lead the roll call of gainers, up 3.6% to 298.7p, followed by Randgold Resources (LON:RRS) up 2.2% to 6660p.
The FTSE 250 midcap index is less a beneficiary of weaker sterling but it too rose, by 0.2% to 18,379 and led by JD Sports Fashion plc (LON:JD.) up 4.2% to 328.9p, and followed by miners Polymetal International plc (LON:POLY) up 3.3% to 917.5p and KAZ Minerals plc (LONKAZ) up 3.2% to 386.6p.
The FTSE AIM 100 Index closed 0.2% higher at 4158 and the FTSE AIM All-Share Index up 0.5% at 867.
Gainers overpowered losers on the London bourse by 42% to 26%.
1440 GMT - FTSE 100 shrugs off weak start on Wall Street
FTSE up 23 to 7,232
US markets open lower
Pound under cosh on PM’s hint of hard Brexit
Theresa May’s latest Brexit thoughts bolstered FTSE 100 in afternoon trading as sterling’s weakness gave another translation boost to companies with a lot of overseas earnings.
London’s blue chip index was up 23 at 7,232 despite a poor start on Wall Street with the US blue down by around 70 points in early trading.
Mining stocks are a prime beneficiary of sterling’s dip and aided by aresearch note this morning from Barclays Capital, it was the sector that led Footsie.
Glencore (LON:GLEN), up 2.5% at 296p, was the top performer, closely followed by Anglo Aerican.
Accountancy software firm and perennial takeover rumour Sage (LON:SGE) was also going well and ticked up 2.2% to 672p.
Britain’s state-owned banks were among the most performers with Royal Bank of Scotland (LON:RBS) down 2.6% at 226.3p.
Lloyds Banking Group PLC (LON:LLOY) was also weak as the government reduced its holding by 1% (selling 700,000 shares) to now 5.95%. It did have a 43% stake once after the bailout of 2008 and the financial crash.
11.00am ...FTSE 100 up grinds higher as Barclays talks up miners
Mining stocks continue to drag the top-share index, helped by a research note this morning from Barclays Capital.
The FTSE 100 was up 17 points at 7,227, with Glencore (LON:GLEN), up 2.3% at 295p, leading the pack.
Barclays thinks the shares are worth 390p, and recommends clients take an ‘overweight’ position. The City firm also had positive words to say about Antofagasta PLC (LON:ANTO), where the price target has been lifted to 650p from 510p; BHP Billiton plc (LON:BLT) – price target up to 1,385p from 1,175p; and Rio Tinto PLC (LON:RIO) – the price target has been raised to 4,490p from 3,200p.
Topping the mid-caps was Ferrexpo PLC (LON:FXPO) after a trading and production update sent the shares 6.7% higher.
“As today’s 4Q16 production update shows, 2016 was a pivotal year for FXPO with iron prices recovering and the pellet premium increasing,” noted Cantor Fitzgerald, as it reiterated its ‘buy’ rating.
Sterling is taking a kicking on the foreign exchange markets today after prime minister Theresa May’s comments on Brexit over the weekend, which is sparking interest in heavy dollar earners such as the fags companies, British American Tobacco plc (LON:BATS) and Imperial Brands PLC (LON:IMB), and fashion firm Burberry Group PLC (LON:BRBY).
Lender Lloyds Banking Group PLC (LON:LLOY) slipped 0.7% to 65.44p as the government offloaded a few more shares; it is now no longer the bank’s major shareholder, yielding that honour to asset manager Blackstone.
Among the small caps, there was a bit of a pregnancy theme going on.
Concepta PLC (LON:CPT), the healthcare company, advanced 8% as it achieved ISO13485 accreditation for its myLotus fertility product, due to be launched in the UK and mainland Europe in the second half of this year.
The share price reaction to the announcement from WideCells Group PLC (LON:WDC) was more modest – a 0.9% rise – as it revealed a tie-up with umbilical cord blood sample storage specialist Biovault.
Biovault will market WideCells’ CellPlan stem cell insurance product to its customers.
9.00 ... FTSE 100 up five points
The FTSE 100 got off to solid rather than spectacular start driven higher by the miners, which were in demand once again in after last week’s round of profit taking.
At 9am the index of blue-chip shares was up five points at 7,214.88.
Marks & Spencer PLC (LON:MKS) was an early casualty ahead of the company’s Christmas trading update on Thursday.
William Hill (LON:WMH) shares were on offer after it sounded the earning alarm – although the fall of just over 3% suggested this sort of drama had already been priced in.
A warning from Bovis Homes (LON:BVS) accompanied by the boss’ swift departure actually led to a 2.4% rise in the stock.
6.45am...Footsie expected to ope 30 points higher
The FTSE 100 is expected to open what will be a busy week for corporate news in positive territory.
Whether it remains in chipper mood and at record levels depends on the performances of the big guns in the retail.
The index of blue-chip shares will advance 30 points to 7,240.05 when the lights are turned on later, according to the spread betting firms.
Overnight, Asian markets were marginally higher, pricing in a degree of caution ahead of president-elect Donald Trump’s press conference Wednesday, at which his take on trade with on China will be closely scrutinised.
Back here in the UK we’ve possibly been given a taste of things to come for Britain’s shopkeepers by Next (LON:NXT), which sounded the earnings alarm last week.
That also prompted sell-offs for Marks & Spencer (LON:MKS) and Primark owner Associated British Foods (LON:ABF).
The market is now pricing in a tough Christmas for the two stalwarts of the High Street, so any positives to be drawn from their respective updates should be rewarded by an immediate spike in the share price.
For the quoted supermarket groups the question is how well did the foreign discounters perform over the festive season?
The early analysis has suggested the UK’s grocery chains have rediscovered their mojo.
- Brent crude 21 cents lower at US$56.89 a barrel.
- Gold US$1.30 higher at US$1,174.70.
- Pound worth U$1.2239.
Business headlines
- Taxpayers are facing a £24bn bill for decommissioning oil and gas fields in the North Sea — threatening to wipe out remaining tax revenues from an industry that has been among the Treasury’s most reliable cash cows for the past four decades - FT.
- Saudi Aramco gets ready for ‘no ordinary IPO’: The ambitious proposal for an initial public offering in state-owned Saudi Aramco is the centre-piece of the hard-charging Mohammed bin Salman’s vision to overhaul an economy seen as too heavily dependent on natural resources – FT.
- Alphabet’s autonomous car company, Waymo, has revealed that it has built all of its self-driving sensor hardware in-house, putting it ahead of rivals such as Uber in the race to perfect driverless cars – FT.
- New hedge fund launches last year look set to be the lowest since 2008 if the rate at which new funds were launched in the first three quarters held steady to the end of 2016. Fund closures are also set be the highest in eight years – FT.
- Crispin Odey has begun to shed staff after the billionaire hedge fund manager’s investments suffered the worst year in his firm’s history, losing nearly half their value as bets on a market collapse failed to come good – Times.
- Bankers’ bonuses may be cut by 10% in the next few weeks, with employees of some struggling European banks set for no rewards at all in this year’s pay round – Times.
- The Financial Conduct Authority has committed a series of embarrassing security blunders, ranging from accidentally sending highly sensitive regulatory reports to the wrong firm to unwittingly revealing the details of 2,000 City workers in the process of moving jobs – Times.
- Foreign currency reserves lose US$5bn in five months: The war chest to protect the pound in the face of a sterling crisis has shrunk since June’s referendum to leave the European Union – Times.
- The pharmaceuticals industry is set for a surge in deal-making this year, as companies under pressure from weak drugs pricing and higher costs take advantage of low valuations and a tax-friendly political climate in the US to bolster faltering sales growth – Telegraph.
- He is famed for his grumpy demeanour on BBC1’s The Apprentice, but Lord Sugar has given himself something to smile about. The peer paid himself a £181million dividend, revealed by the latest filing from his Amshold Group, which owns property in London and the South East – Daily Mail.