FTSE 100 closes 1.05% higher
US stocks higher after recent tax reform, GDP data
Pound fairly flat versus dollar, euro
Last full trading session before Christmas
FTSE 100 closed over 1% higher as the Santa rally was said to be in full swing.
The premier UK index of leading shares closed out at 7,603 - up 1.05%, or over 78 points, to reach a fresh high, and breached the 7,600 mark for the first time.
"The FTSE 100 is the standout performer in Europe as it reached a fresh all-time high. The market has cleared the 7600 mark, for the first time ever. Since consumer goods like Reckitt Benckiser, Diageo and Tesco are some of the biggest risers on the day, the Santa rally is certainly underway," noted David Madden at CMC Markets.
Sterling was relatively flat against the Euro and the US dollar, while Brent crude added 1.19% to US$64.56 a barrel, and gold was around flat at US$1,270 an ounce.
Top riser on Footsie was Mediclinic International Plc (LON:MDC), which soared 7.33% to 630p, while the top loser was cruise giant Carnival (LON:CCL), which shed 1.73% at 4,878p.
3.40pm: FTSE hits new all-time high
The FTSE 100 has reached a new all-time high, rising 81 points to 7,607 in the run-up to the Christmas break.
“There is no specific catalyst for the latest move higher which has seen a rise of almost 1% on the day, with favourable seasonality effects probably playing an important role,” said David Cheetham, chief market analyst at XTB Limited.
“Mining stocks feature prominently in today's rise with Rio Tinto, Glencore and Anglo American all firmly in the green.”
He said the much-discussed Santa rally "could still be to come". From a technical point of view, a clean break higher after a fairly long period of consolidation “paves the way for significant upside ahead”, he said.
Across the Atlantic, US stocks were also trading near record levels as investors, supported by strong GDP data and the US tax reform.
2.40pm: US stocks open on the front foot
US stocks have opened higher as investors continue to digest the approval of the tax bill by the House of Representatives.
The Dow Jones Industrial Average rose 75 points to 24,802, the S&P 500 increased 8 points to 2,687 and the Nasdaq Composite Index added 17 points to 6,978.
Donald Trump’s sweeping overhaul of US tax legislation will mean tax cuts for companies and individuals, providing a boost to stocks.
Meanwhile, the third quarter estimate of US GDP was unexpectedly revised lower but the economy grew at the fastest pace since the first quarter of 2015.
US jobless claims rose more than forecast but the underlying trend remained consistent with a tightening labour market.
Closer to home, the FTSE 100 is up 48 points to 7,573.
2.00pm: US jobless claims rise more than forecast
US jobless claims rose more than expected last week but remained under the 300,000 threshold, which is associated with a strong labour market.
Initial jobless claims increased 20,000 to a seasonally adjusted 245,000 in the week ended 16 December, the Labour Department said. Economists had forecast 233,000 claims.
The four-week moving average of continuing claims rose 4,250 to 1.92 million, more than the 1,898 gain expected.
1.40pm: US third quarter GDP estimate revised lower
The US gross domestic product (GDP) estimate for the third quarter was revised slightly lower by the Commerce Department but still marked the fastest pace of growth in more than two years.
GDP expanded at a 3.2% annual rate in the third quarter, down from the 3.3% reported last month. It was the quickest pace of growth since the first quarter of 2015 and was an improvement on the second quarter's 3.1% rate.
“After President Trump secured the biggest win of his reign with the US$1.5tn tax cut, the news that US GDP in Q3, despite being shorter than expected, tracked the fastest pace of expansion in three years will leave him feeling positive about the country’s economy," said Dennis de Jong, managing director at UFX.com.
"Despite Q3 coming lower, Trump will still be feeling bullish that his strategy is working and that the US economy will continue to go from strength to strength.”
12.05pm: FTSE 100 holds firm but US stocks seen flat
The Footsie settled around the day’s highs at lunchtime as the Santa rally kicked in modestly again on the final full session before Christmas, even though US stocks are forecast to start pretty flat after recent record highs.
Around midday, the FTSE 100 index was up about 26 points at 7,550, just off the session peak of 7,553.51.
Craig Erlam, senior market analyst at Oanda, commented: “US equity markets are expected to open relatively unchanged on Thursday, a day after posting small losses despite tax reform successfully making its way through Congress in time for the holidays.”
He said: “With tax reform having been priced in over the course of the year, including a late push in recent weeks as details of the bill became clear and progress through Congress was made, it’s evident that it is already priced in.
“While we’re not yet seeing signs of corrections following – in buy the rumour sell the fact fashion – markets may struggle for positive catalysts over the next week or so.”
Erlam added: "There is some economic data to keep an eye out for today, including the final US GDP reading for the third quarter, which is expected to be unrevised at 3.3% on an annualised basis.
“This will be accompanied by the Philly Fed manufacturing index and US jobless claims, as well retail sales and inflation data from Canada, which could provide some market volatility in an otherwise quiet session.”
On currency markets, sterling was as flat as a pancake against both the dollar and the euro, at US$1.3366 and €1.1265 respectively.
11.20am: Santa rally resumes
The FTSE 100 index managed to move up a gear in late morning trading on the final full session before Christmas, resuming the Santa rally despite some caution ahead of today’s election in the troubled Catalonia region of Spain.
Chris Beauchamp, chief market analyst at IG, commented: “Catalonia’s election provides the key event to watch for the day, with European markets continuing their hesitancy of the previous two sessions.”
He added: “While both sides will hope that the result dispels the confusion that surrounds the issue, the likelihood is that Catalonia will still be a problem to watch for in 2018 as it was in the last months of this year.”
But despite Europe’s hesitancy, the UK blue chip index was ahead about 23 points at 7,543 at 11.15am, near the day's peak of 7,549.50.
On currency markets, the pound remained fairly flat versus the dollar and the euro at US$1.3378 and €1.1266 respectively.
10.10am: Chancellor's early pressie
Chancellor of the Exchequer Philip Hammond got a small early Christmas present today from news the UK budget deficit edged down last month, boosted by robust income tax revenue.
Public sector net borrowing, excluding state-owned banks, fell to £8.7bn last month, the Office for National Statistics said, 1.9% less than the same month last year and slightly less than forecasts for it to rise to £8.9bn.
Britain’s economy has been slowing this year following June 2016’s vote to leave the European Union, but the public finances remain broadly on track to meet the Chancellor’s new fiscal targets.
The ONS data, however, did little to stir financial markets on the last full trading day before Christmas.
Sterling remained fairly moribund, just edging higher against both the dollar and the euro, at US$1.3384 and €1.1267 respectively.
Meanwhile, the FTSE 100 index was around 8 points higher at 7,532, recovering from a dull start as the Santa rally attempts to get back on course.
8.50am: Flat at open
The FTSE 100 opened almost flat at 7,523.09 on minimal volume with builders being sold off amid worries over the outlook for the UK economy.
Persimmon (LON:PSN), Barratt Developments (LON:BDEV) and Berkeley Group (LON:BKG) were all on offer.
The latest car sales figures appear indicative of deteriorating consumer sentiment which could permeate through to the housing sector.
They showed a sharp slowdown as the impact of inflation on pay levels hit household budgets, while Brexit and the outlook for economy has added to the uncertainty.
And of course recent data from surveyors show that house prices in London were in reverse gear, providing evidence of tougher times to come for the sector.
On the plus-side, the miners, led by copper producer Antofagasta (LON:ANTO) were in demand.
Proactive news headlines:
Summit Therapeutics PLC (NASDAQ:SMMT, LON:SUMM) has farmed out the rights in Latin America to its in-development ridinilazole treatment for CDI.
ImmuPharma PLC (LON:IMM) has confirmed that the last patient has completed dosing within the 52-week, randomised, double-blinded, Phase III clinical trial of Lupuzor™, its lead programme for the potential breakthrough compound for Lupus, the life threatening auto-immune disease. The specialist drug discovery and development company said 200 patients have been successfully recruited and dosed, with top line results remaining on track to be reported in the first quarter of 2018.
Cyber-security specialist Corero Network Security PLC (LON:CNS) had some mixed news for shareholders, with record order intake in the fourth quarter but a warning that full-year revenues would be hit by implementation delays at a couple of customers.
Bloomsbury Publishing PLC (LON:BMY) is looking for a new group finance director following news that Wendy Pallot has informed the board of her intention to resign from the position to join FTSE 250 listed Euromoney Institutional Investor PLC (LON:ERM). The AIM listed firm said Pallot will remain in her post at the Harry Potter books publisher for the duration of her 12 month notice period “to ensure a smooth and orderly handover”.
Gfinity Plc (LON:GFIN) has announced that leading French esports franchise and current reigning EA SPORTS™ FIFA Ultimate Team World Champions, Team Vitality, will join the highly popular Gfinity Elite Series for season three, which is due to commence in March 2018. Big Pic in December.
Directa Plus Plc (LON:DCTA), a producer and supplier of graphene-based products, has received an order from bicycle tyre manufacturer, Vittoria.
Connemara Mining PLC (LON:CON) said it has achieved its key objectives at its Mine River gold project in Wicklow and Wexford, Ireland. The company has drilled two holes at Gibbet Hill at 193 metres and another at Tom Breen at 97 meters. Elsewhere in the project area it has completed sampling and mapping.
Stratex International plc’s (LON:STI) new interim chief executive Bob Foster has kicked off a review of the gold explorer’s assets. Foster is the company’s former boss, who left in August 2016 after 10 years in the role, and was brought back on an interim basis in November to help carry out an independent review of the group’s position and strategy.
Victoria Oil & Gas plc (LON:VOG) told investors that its third quarter results are in-line with expectations as it gave an update ahead of the close of 2017. The company highlighted that it has had an ‘extremely active’ few months in its Gaz Du Cameroun subsidiary.
Plexus Holdings PLC (LON:POS) chief executive Ben van Bilderbeek told investors its financial performance, in the year ended June 30, has mirrored the challenging trading conditions faced by the oil and gas sector.
As part of its transition from product development into a revenue-generative company, stem cell services provider WideCells Group PLC (LON:WDC) has beefed up its management and advisory team. The London-listed group has added Peter Presland, Malcolm Glaister and Zakaria Aziz to its board as non-executive directors.
European focused mineral explorer Erris Resources plc (LON:ERIS) got off to a steady start on its junior market debut on Thursday. Shares in the company – which has a portfolio of zinc prospects in Ireland and gold projects in Sweden – gained 2p on the 25p initial public offering price in early deals to trade at 27p.
Bushveld Minerals Limited (LON:BMN) has completed the acquisition of the 55% of Bushveld Vametco it doesn’t already own for an initial US$11.1mln in cash and shares. This in turn will give it a 59.1% stake in South Africa's Vametco vanadium mine and processing operations compared with 26.6% formerly.
European Wealth Group Limited (LON:EWG) has announces that its chief operating officer, Simon Ray has tendered his resignation with effect from 31 December 2017. The integrated wealth management group said Ray will continue to work with the firm as an independent contractor covering IT and Systems.
Trading in the shares of office productivity software group BOS GLOBAL Holdings Ltd (LON:BOS) has been suspended after funding talks broke down.
Scotgold Resources Limited said it raised gross proceeds of approximately £2.66mln, before expenses, from its recent rights issue at 0.25p per share. The group said, following the rights issue, its chairman Nat le Roux increased his holding in the company to 15,045,494 shares, or 56.64% of its issued capital.
Highlands Natural Resources Plc (LONHNR) has announced that, with immediate effect, Cantor Fitzgerald Europe has been appointed as its sole financial adviser and corporate broker.
6.45am: Modest gain predicted
Its beginning to look a lot like Christmas, everywhere you go – especially in the City.
Office headcounts are dwindling and the holidays are almost upon us. Naturally, the FTSE 100 is festively tame. The benchmark is seen slightly higher ahead of Thursday’s open.
Donald Trump’s tax vote had been among the remaining focal points for investors, though since it passed Wednesday trading catalysts have been fewer.
“The long awaited US tax reforms were approved last night the reaction was relatively muted,” said David Madden, analyst at CMC Markets.
“The major US indices closed slightly lower on the session even though the House of Representatives voted 224 to 201 in favour passing the tax reforms. Donald Trump pledged tax cuts on his campaign trail to get to the White House, and now one of his major promises was been agreed upon less than one year into his premiership.
“US equities have been driving higher throughout 2017 as the prospect of substantial tax cuts was fuelling investor sentiment. The cooling of the US stock market when the vote on the tax cuts was passed suggests that traders are ‘buying the rumour and selling the fact’.”
In New York, the Dow Jones closed 0.11% lower, at 24,726. The S&P 500 and Nasdaq Composite, meanwhile, finished down 0.8% and 0.4% at 2,679 and 6,960 respectively.
Japan’s Nikkei was down 0.11% at 22,866, while Hong Kong’s Hang Seng was up 0.5% at 29,374.
Australia’s ASX 200 nudged 0.25% lower to 6,060.
In London, CFD and spreadbetting group IG Markets sees the FTSE 100 in positive ground – calling the benchmark up 8 points just over an hour before the open, at 7,524 to 7,528.
The corporate new calendar is looking festively bare, with no notable announcements expected ahead of time.
Significant events for Thursday December 21:
AGMs: Karelian Diamond Resources Plc (LON:KDR), Plexus Holdings PLC (LON:POS), Trinity Capital PLC (LON:TRC), Transense Technologies PLC (LON:TRT)
Ex-dividends: To click 0.5 points off FTSE 100 - Burberry Group PLC (LON:BURB), United Utilities PLC (LON:UU)
Economic data: UK public sector finances; US final Q3 GDP; US weekly jobless claims; Philly Fed business outlook
Around the markets:
- Sterling: US$1.3351, down 0.19%
- Gold: US$1,265 an ounce, flat
- Brent crude: US$64.47 a barrel, down 0.14%
- Bitcoin: US$15,737, down 4.3%
City headlines:
- Damian Green sacking prompts new trouble for Theresa May - The Guardian
- Shoppers to spend £1.4bn on Saturday in a last-minute Christmas panic - City A.M.
- UK cars hit by crash in demand -The Times
- AT&T, Comcast say GOP tax bill will mean $1000 bonuses for employees - Washington Post
- Rolling Stone magazine bought by Penske Media - BBC News
- China’ Didi Chuxing raises over $4 billion as battle with Uber intensifies – CNBC
- Online Brokerage E*Trade Is Now Letting Its Customers Trade Cboe Bitcoin Futures -Fortune
- Chipotle shares drop on yet another report of possible food safety issues - CNBC