Mid-afternoon FTSE 100 miners, boosted by higher commodity prices, were in the ascendant with Fresnillo and Anglo American seeing +3.4% and +2.75% gains. Rolls-Royce and Ferguson fared less well, down -1.7% and -1.6%.
Continued thin trading in the US did little to liven the fag-end-of-Christmas atmosphere. A significant number of traders remain on holiday and the sheer effort to get the Trump tax bill passed last week means a measure of exhaustion persists from several quarters.
But the lack of action means no news is good news – no meaningful impetus to sell. Overall, the Dow was up +0.12% at 24,775 late afternoon, UK time.
One story came to the fore: China’s Gheely looks set to take an 8% stake in truck maker Volvo Group. If a €3.25bn deal with owner Cevian Capital goes through it means Volvo cars and trucks would return to shared brand genes. Shares in Volvo Group have surged in the last 18 months under ex-Scania man Martin Lundstedt.
The FTSE 100 ended 28 points higher tonight while the pound was up +0.13% against the dollar at 1.3394; the euro jumped +0.24% against the greenback to 1.1893.
- UK FTSE 100 7,620 +0.37%
- DAX 13,049.18 -0.18%
- CAC 40 5,363.69 -0.02%
- Dow 24,740.81 -0.03%
- S&P 500 2,682.10 +0.06%
- Nasdaq 6,945.83 +0.14%
- Nikkei 225 22,911.21 +0.08%
- Gold 1,289.80 +0.18%
- Oil WTI 59.69 -0.47%
Labour piles pressure on Hammond for post-Brexit 'intel'
In the UK Labour politicians are continuing to keep the pressure up on Chancellor Philip Hammond for the release of sector-by-sector impact assessments on how the UK will fare, post-Brexit.
"Without access to the latest taxpayer-funded analysis and research, Parliament will be hamstrung in its ability to scrutinise the government's approach and to present the facts to our constituents,” a letter sent to the Chancellor said.
So far the Treasury has said any response would be “deeply unhelpful” to the public. However David Davis has suggested his own Brexit department is responsible for almost 60 sectoral analyses so far. The Labour names to the letter include Alison McGovern, Stephen Doughty and Stella Creasy.
2017 IPOs hit record level
Earlier the FT reported that the number of IPOs has hit record levels since the start of the financial crisis. Close to 1,400 companies floated in 2017, representing a 44% hike on 2016.
However, according to Renaissance Capital, the average +23% IPO performance gain did not disgrace the US S&P index, up more than +20% over the same time span.
“European listings rose more than 40% and China marked a record number of deals, which helped to boost the global deal count."