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FTSE 100 shares closed higher but off their session highs on Wednesday as markets failed to derive much upside from the Dow Jones Industrial Average finally breaking above 20,000 for the first time.
Markets also shrugged off UK government plans for a White Paper setting out its plans for leaving the EU. Whether or not Parliament’s authority is required to trigger Article 50, a White Paper announcement is procedural.
The blue-chip index ended up 0.2% at 7164 having earlier hit a day high of 7205.
Antofagasta Holdings (LON:ANTO) was the top gainer of 4.1% to 857.5p after the Chilean copper and gold miner enjoyed a strong fourth quarter performance and kept cash costs for the year below its guided level. Resources, especially copper, have enjoyed a good run in the past week especially on hopes of higher resource prices in light of plans by US President Donald Trump to invest in major infrastructure projects.
Earlier, on Wednesday reports were flying of what the top 50 projects of the Trump Administration might be.
READ: Top 50 Trump US infrastructure projects named
The mid-cap FTSE 250 ended up 0.2% at 18,133 and led by newsagent and stationers WH Smith Plc (LON:SMWH) up 7% at 1584p after it expressed confidence about 2017 as sales have grown and it expects profit to be "slightly" ahead of expectations thanks mainly to its outlets in stations and airports.
Among small-caps, the FTSE AIM 100 Index ended down 0.05% at 4166 and the FTSE AIM All-Share Index up 0.03% at 875.
London’s gainers totalled 35% and losers 30%.
1615 GMT - FTSE 100 higher, but Dow dominant as 20,000 level breached
FTSE 100 up, but stays off its session high
Dow Jones powers through 20,000 level
Ashtead catches the eye as The Donald gears up to build his wall
Restaurant Group serves up profit warning, drags Domino's with it
4.15 pm … Dow blasts past 20,000 …
The Footsie held firm albeit off highs in late afternoon trading, with the main focus across the Atlantic as the Dow Jones powered through the 20,000 level for the first time today.
At 4.15pm, the FTSE 100 index was up nearly 19 points at 17,169 supported by strength in heavyweight mining stocks.
In New York, the US blue chip index was up over 150 points to 20,064, the first time it has exceeded the psychologically significant 20,000 level in intraday trading.
The gains for the Dow came after new US president Donald Trump signed executive orders yesterday to move forward with the construction of controversial infrastructure projects.
The rally was also supported by expectations that Trump will unleash a raft of pro-business policies, including a rollback of regulations, tax cuts and fiscal spending.
However it remains to be seen if the Dow will close above 20,000.
Chris Beauchamp, chief market analyst at IG, said: “The great day is finally here, as the Dow Jones tops 20,000 for the first time.
“The news has already been lauded by President Trump as a sign of the health of the American economy, although little has changed since the election or inauguration.
“Instead, the 10% rally in the Dow that has carried us this far is a sign that the long-term bull market remains intact and that talk of its demise has been greatly exaggerated.”
1.15 pm ... Ashtead higher ...
Ashtead Group (LON:AHT) was the stand-out stock on the FTSE 100 in early afternoon trade with the price up 3%.
The company is a plant hire specialist with 80% of its revenues in the US.
One wonders then whether it will pick up work when President Donald Trump begins work on his wall cordoning off Mexico from the US.
More likely it will be a beneficiary of the wider investment in infrastructure Stateside and of course the weak pound will flatter dollar earnings.
At 1.15pm, the Footsie was in positive territory but down from its session high as it posted a 30 point gain to move to 7,180.67.
The miners were still in demand after BHP Billiton’s (LON:BLT) results and a spike in the copper price, while low cost-carrier easyJet (LON:EZJ) rebounded a little from Tuesday’s sell-off.
Moving down to the second-tier, a profit-warning from Frankie & Benny’s owner Restaurant Group (LON:RTN) sent the shares plunging 11% and dragged Domino’s Pizza (LON:DOM) with it for good measure.
11.00am ... Footsie pairs gains ...
FTSE 100 gave back some of its early gains but was still well in the blue with a gain of 15 points at 7,167.
Miners had led the early charge as copper prices rose by 3% overnight.
That was timely for Chile-based miner Antofagasta Holdings PLC’s (LON:ANTO) trading update today. Shares rose 13p to 837p.
Mining giant BHP Billiton plc (LON:BLT), was weaker despite reporting strong demand for iron ore over the past quarter, whiel Anglo American PLC (LON:AAL) also slipped into the red despite the copper rise and a bullish update from diamond arm De Beers yesterday.
BT Group PLC (LON:BT.A), which saw 20% wiped from its value Tuesday, clawed back some of the losses with a 1.7% rise to 308p.
WH Smith (LON:SMHW) gained 7% to 1,580p as the FTSE 250-listed firm said like-for-like sales for its travel business - which includes outlets at airports, railways stations, motorway services, and hospitals – were up 5% for the 21 weeks to 21 January.
'Spoof humour' books, meanwhile, helped cushion sales on the high street. Five on Brexit Island was a notable best seller after the referendum vote.
Frankie & Benny’s and Garfunkel’s owner The Restaurant Group (LON:RTN) slumped 10% on another downbeat trading statement.
Like-for-like sales fell 3.9% in the 53 weeks, but fell by 5.9% in the last three months.
Among the small caps, trade mag group Centaur Media Plc (LON:CAU) publisher of Marketing Week and The Lawyer, reported trading in 2016 met market forecasts and had since improved further. Share price was 16% higher at 47.12p.
Office productivity software developer BOS GLOBAL HOLDINGS Limited (LON:BOS) was another big riser as it launched BOS Automate, a cloud-based document management platform, with the shares rising by 9% to 8.06p.
Testwork results from Beowulf Mining plc’s (LON:BEM) graphite portfolio in Finland sent its share price 14% higher to 11.25p.
Composite samples taken from its Haapamäki, Pitkäjärvi and Aitolampi graphite prospects produced concentrate grades of 94.5%.
8.50am ... FTSE 100 to rally led by the miners; more pain for BT ...
The FTSE 100 rose over 50 points and above 7,200, led higher by the miners.
A jump in the copper price catapulted Antofagasta Holdings (LON:ANTO) 5% higher in the opening hour.
Not far behind was BHP Billiton (LON:BLT), which said it enjoyed strong demand for iron ore as it issued its quarterly results.
BT Group PLC (LON:BT.A), which saw 20% wiped from its value Tuesday, was down a further 1.7% on the back of its Italian accounting scandal. That pushes the stock through 300p support floor.
Moving down to the FTSE 250, investors responded positively to the Christmas trading update from the nation’s favourite stationer, WH Smith (LON:SMHW) with the shares up 7% early on.
6.45am ... Rebound predicted ...
FTSE 100 stocks look set to start Wednesday on a rising tack after strong gains overnight in the US and Asia.
Financial spread bet firms see Footsie adding up to 20 points with miners tipped to go well after a good showing overnight on Wall Street.
The UK Supreme Court’s decision yesterday that the government must ask Parliament to vote on Britain’s exit from EU had little impact and is expected to have even less today.
US stocks, meanwhile, posted more record closing highs as Trump-rally returned in earnest.
The Dow Jones Industrial Average climbed 113 to 19,912, while the S&P 500 was led higher by its mining group, which rose 3.4% on the back of gains for industrial metal, like copper.
Global copper prices jumped by 3% on Tuesday and sped towards $6,000 a tonne.
Financial, technology, industrial and energy shares also climbed.
Asian markets reflected the good mood in the US with strong gains in Tokyo and Hong Kong and a modest improvement in Shanghai.
City headlines
- BHP slices full-year copper production forecast – Financial Times
- Scores of planned UK power plants could be scrapped after subsidy change – Financial Times
- Tesco faces fresh lawsuit over past accounting irregularities – Financial Times
- Italy’s red arrows make tracks for Britain’s HS2 rail line – The Times
- British Gas to pay £9.5 million over botched bills – The Times
- UK airlines will ‘fall off cliff without Brexit deal says Ryanair boss – The Independent
- BT suffers worst day in more than 30 years as shares are battered by accounts scandal and tough outlook – Daily Telegraph
- Citigroup plans new operations away from London after Brexit – The Guardian
Currencies/commodities
- Gold - down US$6 to 1,202 per ounce
- Oil (WTI) - down US$0.18 at US$53 per barrel
- $/£ - 1.2495, dollar weaker