- the DAX was up 108.88 points despite political uncertainty in Germany
FTSE 100 closes up 21.88 points
Dow Jones jumps 179.01 points
Sterling slightly higher ahead of UK Budget
easyJet rises despite lower profits
The FTSE 100 managed to close in positive territory, buoyed by the late rally in the DAX and other European markets, as investors now wait for the budget presentation by Chancellor Philip Hammond on Wednesday.
The blue chip index closed up 0.30% or up 21.88 at 7,411.34 points while
The market was also hopeful that reports that the Cabinet has agreed to hike the Brexit divorce payment to £40bn - nearly twice as much as what was on the table - would help smoothen trade talks with the EU.
And news that the UK public sector borrowing in October had widened by £0.5bn from a year ago, will raise some concerns over what Hammond will have to offer in the Budget.
Ipek Ozkardeskaya, senior market analyst at London Capital Group said: "Chancellor Philip Hammond is expected to remain cautious on the budget, especially if the UK prepares to loosen its purse string to quit the EU in a friendly manner. Of course, the UK's offer may fall short of the EU's demand."
And moving on the share front, easyJet PLC (LON:EZJ) was up 5.09%, or 65p at 1,343p after the low-cost carrier said its passenger traffic in fiscal 2017 rose by 10% and that forward bookings for the first quarter of 2018 are ahead year on year.
Kingfisher PLC (LON:KGF) added 1.35% or 4.10p to close at 308.50p after the DIY retailer continued to receive the backing of HSBC analysts who said the stock looks cheap and the downside risk was limited. Kingfisher's like-for-like group sales dipped 0.5% in the third quarter, with sales continuing to remain weak in France.
Compass Group PLC (LON:CPG) dipped 3.33% to 1,538p after it said full year pretax profit jumped 18%.
3.30pm: Footsie holds firm as Dow jumps
The FTSE 100 remained higher in late afternoon trading as US stocks made a strong start buoyed by some corporate news and above-forecast economic data.
Around 3.20pm, the UK blue chip index was ahead 26 points at 7,415, just off the day’s peak of 7,422.09, having rallied from a low of 7,367.86.
In early trading on Wall Street, the Dow Jones was up over 155 points at 23,586, with the broader S&P 500 adding 16 points, and the tech-laden Nasdaq composite ahead 65 points, hitting a new record.
US data showed existing home sales at a 5.48mln annual rate in October, up 2% to the best monthly rate since June, according to the National Association of Realtors, slightly better than forecasts for 5.45mln.
September’s existing home sales number, originally reported as 5.39mln, was revised down to 5.37mln.
In London, Imperial Brands PLC (LON:IMB) was an afternoon gainer, up nearly 3% to 3,116p after comments from the new boss of Japan Tobacco Inc sparked takeover speculation.
According to Reuters, Masamichi Terabatake told reporters: "If there are good deals, we would like to actively pursue them".
Also on the up with blue chips, budget airline easyJet PLC (LON:EZJ) was the top FTSE 100 gainer, up 6% to 1,355p after its full year earnings were well-received. The airline said that it was benefiting from the collapse of rivals and problems at peer Ryanair (LON:RYA), which has helped its pricing trends.
But on the downside, specialty chemicals firm, Johnson Matthey PLC (LON:JMAT) shed 3.8% to 3,146p after the catalyst maker saw its first-half operating profit fall 2% following one-off restructuring charges.
On the second line, mini-conglomerate Melrose Industries PLC (LON:MRO) dropped 4.8% to 205p after disappointing trading news, but construction materials supplier SIG PLC (LON:SHI) was the biggest FTSE 250 gainer, up 7.5% to 171.6p after an update.
2.15pm: Footsie continues firmer
The Footsie hovered near session highs in afternoon trading, awaiting an expected firmer start today on Wall Street, with the Nasdaq composite on track for another record.
Around 2.15pm, the FTSE 100 index was up about 22.5 points at 7,412, just below the day’s peak of 7,417.3, having rallied from a low of 7,367.86.
In New York, the Dow Jones is seen adding around 100 points, building on yesterday’s gains as investors assess a batch of corporate earnings and side-step news that departing Federal Reserve chair Janet Yellen will leave the central bank altogether, rather than stay on as a Fed governor.
Chris Beauchamp, chief market analyst at IG said|: “Janet Yellen’s decision to step down next February is not really a surprise given her failure to be reappointed; I’m not sure many of us would do any differently were we in her shoes.
“Her speech today will therefore have something of a valedictory quality, but she is now firmly in the ‘lame duck’ category of Fed presidents and thus her comments may not move the market as they once did. Sic transit gloria, as they say.”
In London, Premaitha Health PLC (LON:NIPT) was the top market faller, with its shares plunging by 41% to 4.63p in lunchtime trading after it said the UK High Court has ruled that its non-invasive prenatal testing device IONA infringes on Illumina Inc's patents.
The ruling deemed all of Illumina's UK patent families to be valid, although invalidated a number of claims of the Lo 1 family of patents and decided the IONA test infringes that patent in only some respects.
11:55am: FTSE 100 in positive territory by midday
London’s FTSE 100 had pushed toward 7,400 by midday on Tuesday, meanwhile, New York benchmarks pointed higher.
In premarket, the Dow Jones was seen rising around 55 points while the S&P 500 and Nasdaq also rose.
10:30am: Bitcoin and Ethereum value hit by US$31mln hack
The cryptocurrency market saw yet more volatility amid a new cyber-crime scare, with a reported US$31mln ‘hack’ of the Tether platform – which links Bitcoin and Ethereum transactions to real world currency.
The value of Bitcoin dropped from what had been a record high, losing as much as 5% at one point, immediately after the news of the breach, while the price of Ethereum also took a hit.
It is the latest high profile example of vulnerability in the fast emerging cryptocurrency marketplace.
10:00am: FTSE 100 flattens out after soft start, but traders are on pre-budget standby
The FTSE 100 had flattened out somewhat by 10:00am, after the softer start to the session, but, in truth the market is in low-key mode ahead of tomorrow’s Budget.
Changing hands at 7,393 the benchmark was up 4 points or 0.06% for the day.
easyJet Plc (LON:EZJ) shares rose more than 5% in Tuesday’s early deals even though profits were down, with the budget airline claiming a robust performance in a difficult year for aviation. It highlighted that it carried a record number of passengers, 80mln people.
Elsewhere, Homeserve Plc (LON:HSV) was up nearly 4% after a positive first half financials, and as the group highlighted progress with policy acquisitions and new partner relationships.
B&Q owner Kingfisher Plc (LON:KGF), meanwhile, was a faller on lower like-for-like sales in the third quarter. The retail group’s shares were down just more than 1% to trade at around 301p.
Temporary and events power firm Aggreko Plc (LON:AGK) slumped nearly 10% as it released its third quarter results which were impacted by its problematic unit in Argentina.
9.00am: Footsie retreats early on
The FTSE 100 index drifted lower in early trading despite overnight gains from US and Asian markets as some negative corporate news weighed and investors were cautious ahead of the UK Budget due tomorrow.
After an hour of trading, the UK blue chip index was around 9 points lower at 7,380, having gained 8 points yesterday.
On currency markets, sterling was 0.1% higher versus the dollar at US$1.3250, and was flat against the euro at €1.1284.
Connor Campbell, financial analyst at Spreadex said: “Good and bad Brexit news sort of cancelled each other out after the bell, with reports that the Cabinet are prepared to pay a higher divorce bill to the EU in order to break the current deadlock somewhat countered by the early signs of exodus from London, as the European Medicines Agency and European Banking Authority both announced their new digs outside the capital."
He added: “Still to come is the public sector net borrowing data, with the figure set to rise from £5.3 billion to £6.6 billion month-on-month – not great news for Chancellor Philip Hammond ahead of tomorrow’s budget.”
On the corporate front, DIY retailer Kingfisher PLC (LON:KGF) was an early blue chip faller, down 1.1% at 301p after posting a fall in underlying third quarter sales, as a poor performance in France again offset a strong showing from Screwfix in the UK.
Specialty chemicals company Johnson Matthey (LON:JMAT) was also weak, down 2.6% to 3,186p after reporting a fall in half-year profit, while trading updates weighed on testing equipment firm Intertek Group PLC (LON:EZJ), off 3.7% at 5,205p, and contract caterer Compass Group PLC (LON:CPG), which shed 2.6% at 1,550p.
But discount airline easyJet PLC (LON:EZJ) was the top FTSE 100 gainer, ahead 3.4% at 1,321p as strong growth in revenues offset a fall in full year profits and a reduced dividend, while engineering contractor Babcock International PLC (LON:BAB) added 1.5% at 765.5p after solid first half results.
And energy supplier SSE plc (LON:SSE) was up 1.7% to 1,354p after US broker Jefferies International upped its rating to ‘buy’ from ‘hold.’
On the second line, temporary power provider Aggreko PLC (LON:AGGK) was the top FTSE 250 faller, dropping 9.5% to 877.5p after its last trading update failed to reassure.
Proactive news headlines:
Premier African Minerals Limited (LON:PREM) says the value attributed to its Zulu lithium project in Zimbabwe was higher than expected in a scoping study. Consultant Bara worked on two options at Zulu: just to produce a concentrate; or for Premier to build its own lithium production plant.
Background checks technology specialist ClearStar Inc (LON:CLSU) has appointed Robert Martin to the newly created role of vice president of Sales and Business Development.
NetScientific PLC (LON:NSCI) has announced that its portfolio company, ProAxsis has revealed that direct sales of its ProteaseTag® Active Neutrophil Elastase Immunoassay (NEIA) will increase by a factor of three in the second half of 2017 compared to the first half. The AIM-listed transatlantic healthcare IP commercialisation group added that ProAxis also expects total revenue to surpass £1mln in 2018.
Fast-growing specialist staffing outfit Empresaria Group plc (LON:EMR) is set for another record year of adjusted profits, albeit below current market expectations.
Mporium Group PLC (LON:MPM) has signed a deal with an unnamed pure-play, listed online female fashion eCommerce company.
Atlantis Resources Limited (LON:ARL) has signed a heads of terms agreement with the Duchy of Lancaster for an option on the long-term lease of the riverbed required to develop the Wyre estuary tidal barrage and flood protection project.
Handheld diagnostics specialist genedrive PLC (LON:GDR) has confirmed it and its partners have been formally awarded a £600,000 grant from Innovate UK, a body which supports technology and growth businesses. The money will be used to help fund the development of a disposable, centrifuge-free plasma separation device.
SDX Energy Inc (LON:SDX) chief executive Paul Welch has highlighted that the company is now seeing the financial benefits of last year’s acquisition of Circle Oil’s assets. "This has been one of the company's strongest quarters yet, with net revenue for the period up 271% year on year and drilling success being achieved across our North African portfolio,” Welch said in the group’s third quarter update.
Europa Oil & Gas Holdings PLC (LON:EOG) has confirmed it is following a two-track strategy to secure planning permission for the proposed Holmwood well near the Horse Hill site in Surrey. Surrey County Council’s planning committee last month deferred a decision, citing the traffic management plan attached to Europa's application for Holmwood.
Oracle Power PLC (LON:ORCP) has signed a memorandum of understanding (MoU) with two China state-owned companies to advance its coal assets in Pakistan. The UK energy developer said the MoU with Sichuan Provincial Investment Group Co. Limited (SCIG) and PowerChina International Group Limited records the intention to proceed to a formal agreement to collaborate in setting up, constructing, owning and operating the company’s flagship Thar project.
Bushveld Minerals Limited’s (LON:BMN) vanadium sUBSidiary has started testing a battery with South African electricity supplier Eskom, its first deployment in the country. The vanadium redox flow battery (VRFB) will be deployed at Eskom’s Research, Testing and Development (RT&D) Centre in Rosherville, South Africa.
6.50am: US, Asian markets gain
London’s blue chips are set to open higher after stock markets surged overnight in Asia.
FTSE100 closed 8 points better on Monday at 7,389 and financial spread bet firms expect the momentum to continue today after the strong overseas gains.
Early suggestions are for a six point rise.
Wall Street also had a good day with the Dow Jones Industrial Average adding 72 to 23,430 and rises as well for the S&P 500 and Nasdaq.
Attention in the UK has started to focus in earnest on the Wednesday’s Budget, which will be dominated again by Brexit, but there are a couple of big corporate names reporting.
Airline EasyJet PLC (LON:EZY) has been navigating tough competition, recent terror attacks and a rising oil price but expects profits for the year to be at the high end of its forecasts following a strong performance over summer.
UBS predicts revenue to rise to £4.8bn from £3.6bn and pre-tax profits to reach £407mln.
Retailers Kingfisher, AO World and contract caterer Compass Group also report.
Overnight, Asian stocks surged as technology stocks powered ahead. Chinese messaging and gaming group Tencent is now worth more than Facebook after a surge overnight.
A dip in the yen pushed Tokyo strongly highly.
Commodities/Currencies
US$/£: US$1.3260 - pound edges higher
Gold: US$1,279 - up US$4.6
Oil (WTI) : US$56.45 up 3c
Business headlines
The Guardian
Justice department aims to block AT&T’s US$85 billion takeover of Time Warner: The US Department of Justice on Monday moved to block AT&T’s US$85 billion takeover of Time Warner, one of the largest media deals ever announced.
Uber plans to buy 24,000 autonomous Volvo SUVs in race for driverless future: Uber is planning to buy up to 24,000 self-driving cars from Volvo, the company has announced, moving from its current model of ride-sharing using freelance drivers to owning a fleet of autonomous cars.
Eurotunnel renamed Getlink in preparation for post-Brexit era: Eurotunnel is preparing for the post-Brexit era with a corporate rebrand, with the company being renamed Getlink.
The Times
Sweetened deal is not enough for Spire to swallow takeover by Mediclinic: The biggest shareholder in Spire Healthcare has walked away from takeover talks after its sweetened offer was rejected.
Centrica boss gambles on averting price cap: Since taking over at the owner of British Gas nearly three years ago, Iain Conn has fiercely denied allegations that the energy supply industry has been profiteering. Yesterday the Centrica boss made his boldest bid yet to quieten a furore that shows no sign of abating.
Former Mitie chief faces new inquiry into accounts: Baroness McGregor-Smith, the Conservative peer, is to be the subject of a second investigation by City regulators over her final months running the troubled outsourcer Mitie Group.
Glencore trio stand down amid Congo copper inquiry: One of the executives who became a billionaire when Glencore floated on the stock exchange in 2011 has stood down from the board of a Congolese sUBSidiary after it found “material weaknesses” in its financial reporting.
Carillion in ‘high-risk’ contracts row: The government has come under fire after Carillion continued to win new contracts, despite Whitehall rules designed to limit taxpayer exposure to “financially distressed” companies.
The Independent
UK workers willing to accept lower wages as deadline to leave EU approaches, says Bank of England policy maker: Sir Dave Ramsden suggested that since the Brexit vote British workers may have responded to the uncertainties about the economic outlook by showing even more flexibility in their wage demands
UK productivity remains weak as job prospects for adults ‘hurt’ by poor literacy and numeracy skills: Productivity growth in the UK remains weak and the job prospects of many adults are “hurt” by poor literacy and numeracy skills, according to a new report.
The Daily Telegraph
iSmash ramps up expansion plans with Maplin partnership: iSmash, the smartphone repair business backed by Carphone Warehouse co-founder David Ross, is ramping up expansion plans with a deal to launch three new concessions in Maplin.
Online growth boosts William Hill revenues: Soaring online revenues at William Hill are more than offsetting a decline in wagers being made in its high street shops as the betting industry prepares for an anticipated crackdown on fixed-odds betting terminals.
UK to use small firms’ VAT returns to calculate economic growth: The Office for National Statistics is overhauling the way in which it measures the UK economy by including vast amounts of VAT data from small firms for the first time.
Daily Mail
Messy market return for loo roll maker Accrol with shares falling 66% after pulp shortage hikes production costs: Loo roll maker Accrol failed to convince shareholders it had cleaned up the mess it made with its profits. The company, which suspended trading in September after admitting earnings would be significantly below its forecasts, saw its shares plummet upon its re-entry to AIM yesterday.
Lotto-owner Camelot expected to announce appointment of Nigel Railton as chief exec: National Lottery-owner Camelot is expected to announce the appointment of Nigel Railton as chief executive today.
Chinese online shopping giant Alibaba pins its hopes on physical stores as it buys hypermarket chain for £2.2 billion: It’s one of the world’s biggest websites and has been accused of hastening the demise of the High Street.
British sushi maker Yo! buys Canadian chain for £59 million as it sets its sights on North America: YO! Sushi has bought Canadian food chain Bento Sushi in a deal worth £59 million as the British-based firm bids to push in to North America.
Sales boosted at women’s value retailer Bonmarche thanks to a surge in online demand: Sales at Bonmarche have climbed after being boosted by a surge in online demand.
Daily Express
Etsy to expand London office as it centralises international operations in UK: Etsy is set to expand its London office despite company-wide staff cuts, as the artisan platform looks to centralise much of its international operations in the UK
City AM
Tesla’s breakneck expansion speed could be a car crash: Tesla chief executive Elon Musk surprised fans and investors last week with the unveiling of a US$200,000 Roadster that he claimed could go from zero to 60 miles per hour in 1.9 seconds.
Valentino IPO rumours hot up after appointment of former Marc Jacobs boss Sebastian Suhl: Italian fashion brand Valentino has moved one step closer to a public listing with the addition of former Marc Jacobs Chief executive Sebastian Suhl to its team.
DFS gets the all-clear for Sofology buyout: DFS’ acquisition of fellow sofa-seller Sofology has been given the green light by the competition watchdog.