FTSE 100, 250 both hit record highs with Dow
Construction, commodities, and building material stocks lead gains post-Trump talk
FTSE 100 and 250 stocks, just like Wall Street, defied soothsayersâ prognoses that investors didnât much like a threadbare speech to Congress from US President Donald Trump overnight, and pledged their vote to his spending ambitions as record heights abounded.
Londonâs FTSE 100 ended up a stonking 1.5% at 7,375. Earlier the blue-chip index marked 7,383.05 â a fresh record high. Poor UK data and a surging US dollar overnight, also helped sag sterling enough to give blue-chip stocks an added reason to rise.
That came in the wake of the Dow Jones Industrial Average chalking up another milestone, as it broke above 21,000 for the first time and hit an intraday record high of 21,076.46. It too was up around 1.3% in a solid Wall Street rally.
Trump appeared to dazzle Congress and investors with a polished statesmanlike performance as well as his pledge of $1bn to infrastructure spending and "massive" tax cuts for the middle classes.
However, he did not detail how any of it would be paid for. But that didnât stop investors living for the moment.
Construction and mining stocks were, unsurprinsgly, the biggest gainers on the FTSE 100 as a result.
Ashtead Group plc (LON:AHT) was the top gainer of 6% to 1754.5p and followed by CRH (LON:CRH) up 4.9% to 2853.5p and miner and commodities trader Glencore (LON:GLEN) up 4.8% to 337.43p.
Other top risers included Persimmon (LON:PSN), BHP Billiton (LON:BLT), Bunzl (LON:BNZL), Wolseley (LON:WOS), Rio Tinto (LON:RIO), and Anglo American (LON:AAL), all rising by 3-4%.
Meanwhile, courier Royal Mail PLC (LON:RMG) delivered the biggest fall, of 1.8% to 407p after regulator Ofcom tightened some of the rules governing Royal Mail's role in the parcels and letters market, and warned the postal group that if it continues to miss its targets it could face "significant fines".
On the FTSE 250, which ended at its intraday record high up 1.1% at 18,983.01, the same sectors as dominated the FTSE 100 risers, were present. Top risers were KAZ Minerals (LON:KAZ) up 6.5% to 561p and Vedanta Resources (LON:VED) up 6% to 913p.
Mitie Group (LON:MTO), which earlier advanced by 5.2% after selling its troubled social care businesses for a nominal £2 to private equity firm Apposite Capital, ended up 3.6% at 214.1p.
It was also a strong session for smaller caps. The FTSE AIM 100 Index closed up 0.7% at 4389 and led, for a change, by Blue Prism, (LON:PRSM) a software company.
The FTSE AIM All-Share Index closed up 0.4% at 910.
Underscoring just how good a day it was for London shares, across the bourse, 45% of stocks gained and only 24% lost. At a spread of 21 points, that was the best gains seen since last July when markets began to re-evaluate the Brexit poll fall out last year.
1510 GMT - FTSE 100 flying high as US markets open strongly
FTSE 100 up 108 points to 7,371
Dow Jones smashes through 21,000 barrier
ITV goes for an afternoon run
Liverpool FC slips into the red
The FTSE 100 has been on a tear since the first bell this morning, buoyed by Donald Trumpâs speech in the early hours of this morning.
His address to congress was typically full of clichés and light on detail, but the markets have reacted well nonetheless.
âTodayâs boost is all down to the presidentâs speech to Congress last night,â said ETX Capital senior market analyst Neil Wilson.
âTrumpâs rallying call to reignite the American spirit has produced the desired effect on the markets, pushing stocks to fresh all-time highs.â
Across the pond, the Dow Jones soared through the 21,000 barrier a few minutes after opening this morning, with US banks jumping on renewed hopes that an interest rate hike could be around the corner.
Closer to home, the FTSE 100 was up almost 1.5%, or 108 points, to 7,371 as it hurtled towards the close of play.
UK broadcaster ITV PLC (LON:ITV) went on a little run this afternoon, almost doubling its gains from this morning.
The companyâs share price is currently 4.5% up today to 211.5p after it proposed a 20% hike in its full-year dividend following a âgood performanceâ in 2016.
ITV delivered a slight increase in full-year revenues to £3.6bn in the year to 31 December 2016, driven by online advertising and ITV Studios.
As noted earlier on, housebuilders were on the rise following Nationwideâs relatively upbeat outlook for property prices.
Gold miners on the other hand have been distinctly out of favour for most of the day given the weaker gold price and likelihood of increased US interest rates.
Amongst the small caps, Faron Pharmaceuticals Oy (LON:FARN) shares climbed ever higher as it revealed investors had clamoured for its latest share issue.
The £5mln worth of shares were issued at a premium to the market price at 350p, but was subscribed in full news that sent the price today up 13% to 400p.
Likewise, Jersey Oil & Gas PLC (LON:JOG) is also firmly in investors' favour at present.
The North Sea focused-junior is set to drill the Verbier prospect this project alongside its partner Statoil this summer.
Already almost a twenty-bagger over the past year, shares in Jersey rose another 5% today to 245p.
On the football pitch, Liverpool FC have been below par in recent weeks and the club has now fallen into the red off the field, despite posting record revenues.
Liverpool reported a £19.8mln pre-tax loss for the year to May 2016, with revenues coming in £3mln higher at £301mln.
The club said the loss was largely due to the cost of bringing in big names signings such as Christian Benteke (£32mln) and Roberto Firmino (£29mln), as well as the payoff awarded to former manager Brendan Rodgers, who was sacked in October 2015.
1.15pm...FTSE 100 rally continues as sterling dips
The FTSE 100 got off to a fast start this afternoon to build on the gains posted this morning.
The blue chip index was up more than 1%, or 83 points, to 7,347 shortly after 1pm in London.
One of the main risers towards the end of the morning session was UK housebuilder Persimmon PLC (LON:PSN) which was up almost 4% to £21.36.
Fellow housebuilders Redrow plc (LON:RDW) (up 1.5% to £4.96), Taylor Wimpey PLC (LON:TW.) (up 3% to 185p) and Barratt Developments PLC (LON:BDEV) (up 1.8% to 521p).
The gains made by the sector come on the back of Nationwide predicting house price growth of 2% in the coming year, after prices bucked the Brexit vote to rise by 4.5% in 2016.
Royal Mail Group PLC (LON:RMG) eased lower as the morning wore on and was down 1.5% to 408p, after Ofcom said it was considering altering the rules on delivery targets for the postal services group.
The firm missed its targets of delivering 93% of first class mail within one day in its last financial year, partly because of the surge in online deliveries around Black Friday which causes volumes peak.
While the markets were generally on the up, sterling weakened as a stronger dollar and weaker-than-expected UK manufacturing growth dented the currency, with the USD/GBP exchange falling back towards the US$1.23 as a result.
UK manufacturing activity fell back last month according the influential Markit/CIPS purchasing managersâ index (PMI) survey.
The index registered a score of 54.6 for February, down from 55.7 in the month before and below what analysts had expected.
Given that anything over 50 marks growth, it wasnât terrible news for the sector with many commentators noting that UK manufacturing remains âsolidâ.
Rob Dobson, senior economist at IHS Markit which compiles the survey, said: âAlthough rates of expansion in output and new business lost impetus in February, growth remained comfortably above the long-run averages.â
Elsewhere, one of Londonâs most iconic landmarks, the Leadenhall building or âThe Cheesegraterâ as itâs affectionately known, has been bought by Chinese property firm CC Land Holdings for £1.15bn.
British Land and Oxford Properties, which co-own the building, confirmed the deal after rumours of an acquisition surfaced yesterday.
10.15am...FTSE 100 buoyed by Trump bump; Next tops blue chip risers
Although there was (as usual) little in the way of detail, the markets seem to have reacted favourably to what The Donald had to say in the early hours of this morning.
The FTSE 100 has added to its early gains and is currently up 52 points, or 0.7%, to 7,315.
Glencore PLC (LON:GLEN) and BHP Billiton plc (LON:BLT) were both up more than 2.5% on the back of Trumpâs address, with the share prices up to 330.4p and £13.35, respectively.
The new President once again suggested the idea of a massive US$1bn injection into US infrastructure, which obviously bodes well for the miners producing the materials the superpower may need.
Trumpâs announcement wasnât good news for all the miners though.
After his speech seemed to reassure traders and boost the dollar, gold mining giants Randgold Resources PLC (LON:RRS) and Fresnillo PLC (LON:FRES) were down again after the price of the precious metal slipped.
The greenback and gold tend to move in opposite directions, and the lower price saw Randgold (down 1.4% to £74.05) and Fresnillio (down 2% to £14.57) both open lower.
Away from Trump, struggling UK clothing retailer Next Plc (LON:NXT) was one of those dragging the blue chip index higher after it got a much needed boost from Redburn.
The secretive UK broker upgraded the stock all the way to a âbuyâ from âsellâ, pushing Next shares up by more than 3% to £39.54 to make it the top blue chip riser so far today.
A report from Nationwide showed property prices in the UK have risen by 4.5% over the past year.
The building society said house prices gained 0.6% in February compared with the previous month, bringing the cost of the average home up to £205,846.
Nationwide doesnât expect this rate of growth to continue though given the uncertain market, and is forecasting a 2% rise in house prices over the curse of the coming year.
Workersâ union Unite has claimed that 1,160 jobs will be axed at Ford Motor Companyâs (NYSE:F) Bridgend plant by 2021.
Ford refused to be drawn on the comments and said that job numbers at the plant would stay at similar levels âin the upcoming yearsâ.
9am...FTSE 100 rises after Trump speech; Belgian billionaire takes liking to Burberry
The FTSE 100 made a decisive move higher early on with traders ignoring a rare down day on Wall Street, but still having half an eye on the US.
At 9am the index of blue-chip shares was up more than 45 points at 7,308.71.
President Trump's measured and upbeat tone speaking to Congress, promising a "new chapter of American greatness", appears to have resonated with investors on this side of the Pond.
That said, his speech was light on real detail, analysts said.
"He offered just enough to keep bulls happy by reiterating pledges for US$1bn infrastructure spend and US$54bn defence boost," said Mike van Dulken of Accendo Markets.
Back here in the UK, Burberry (LON:BRBY) was higher early on after Albert Frère, Belgium's richest man, took a 3% stake in the luxury goods group.
Next (LON:NXT) led the Footise with the rather unlikely driver cited as a 'buy' note from an outfit called Redburn partners.
For uninitiated, and I must confess to being among the ignorant until around 10 minutes ago, Redburn was co-founded by former JP Morgan big hitters Jeremy Evans and Charlie Bridge.
Proactive news headlines
The two diamond drill rigs earmarked for the next stage of exploration at Ferensola in Sierra Leone have arrived on site, said Sula Iron & Gold PLC (LON:SULA).
Drilling contractor, Equity Drilling Ltd will prepare the rigs for a 2,400m programme, though Sula's geologists may be able to drill extra holes, which may mean a larger exploration target can be identified. Shares rose 2% to 0.535p.
Thor Mining PLC (LON:THR) is about to put the hammer down at its Pilot Mountain tungsten project in Nevada. It has kicked off an eight-hole drilling campaign. Shares rose 7% to 0.805p.
Banking titan Societe Generale has extended its global strategic partnership with banking software leader Lombard Risk Management plc (LON:LRM). SocGen has elected to use Lombard's COLLINE solution for the collateral management and optimisation of its exchange traded derivatives business.
Life sciences firm OptiBiotix Health plc (LON:OPTI) is to launch products containing its cholesterol reducing strain (LPLDL) at the Vitafoods Europe Trade Show.
SDX Energy PLC (LON:SDX) has spelled out a timetable for the hotly anticipated South Disouq exploration well, with drilling kicking off within the next two weeks.
Northern Petroleum Plc (LON:NOP) updated investors on its Cascina Alberto project in northern Italy, where Shell, its partner, is launching a local engagement programme ahead of future exploration work.
International specialist staffing group Empresaria Group plc (LON:EMR) has reported record 2016 profits as net fee income grew for the fourteenth consecutive quarter. The AIM-listed firm saw its adjusted pre-tax profit increase by 23% to £9.2mln in the year to December. Shares rose 4% to 148.6p.
Global big data technology firm Rosslyn Data Technologies PLC (LON:RDT) has won a pilot project with a leading UK financial services firm worth £50,000. Shares flat at 6.5p.
Commercial passenger aircraft leasing firm Avation PLC (LON:AVAP) has received a rating of BB with a âstableâ outlook from the Japan Credit Rating agency. Shares steady at 216.5p.
Tissue Regenix Group PLC has received a US endorsement for DermaPure, its wound care product while BATM (LON:BVC) predicted a strong second half.
Mobile live video streaming specialist Servision Plc (LON:SEV) surged 11% higher in early deals after it confirmed it has received its first US$1mln from financier Cascade.
Proxama PLC (LON:PROX) opened more than 12% higher this morning after it secured a contract to work alongside Cisco Systems (NASDAQ:CSCO) on a smart transportation proximity ad model in the Greater Manchester area.
Base metals and uranium explorer URU Metals Ltd (LON:URU) has taken an 8.79% stake in project management specialist Management Resources Solutions PLC (LON:MRS).
6.45am...Trump & pump
Londonâs blue chips are set to make early progress following Donald Trumpâs overnight call for big tax changes and a hefty rise in infrastructure spending.
Financial spread bet firms see the FTSE 100 climbing around 20 points when dealing gets underway.
Once again the US President was long on ideas but short on detail.
He repeated his aim to boost military and infrastructure spending by US$1 trillion, but added this should be done through âpublic and private capital.â
Healthcare reform is also on the agenda with Americans to be encouraged to use tax credits and expanded health savings accounts.
Medicaid in one form or another is likely to continue, the President hinted.
Taxes would change but there was no indication as to how.
Asian markets reacted well to the statement with strong gains in Tokyo and rises also in Shanghai and Hong Kong.
The full judgement of US markets comes later and they closed yesterday gently lower with the Dow Jones Industrial Average 25 points down at 20,812.
City headlines
- Barclays seeks to allay fears over pensions impact on dividends â Financial Times
- YouTube to launch cable TV package aimed at younger audience â Financial Times
- Amazon failure disrupts key US websites â Financial Times
- Mobile phone roaming charges wonât go up after Brexit â Daily Telegraph
- Mark Carneyâs incoming deputy under fire for family links to Barclays Bank â Daily Telegraphs
- Shares in Burberry surge after Belgian billionaire Albert Frère discloses stake â Daily Telegraph
- Insurers urge Chancellor to reverse âcrazyâ payout reform â The Times
- Brussels denies scuppering exchange deal â The Times
- Ground rent âscandalâ shakes Taylor Wimpey â The Times
- Uber executive Amit Singhal resigns over sexual harassment allegations â The Independent
- Nissan may âadjustâ its business in the UK despite earlier assurances â The Independent
- Dyson shrugs off Brexit fears with massive UK expansion plan â The Guardian
Commodites/currencies
- £/$ 1.2357 - pound lower
- Gold: US$1,243 down US$5
- Oil (WTI) US$53.86 down US$0.15