The FTSE 100 hit 7,460.2 points earlier today, cementing rises for Shell, up 0.50% and BP, 0.91%. Both oil titans were boosted from this morning’s news that Russia and Saudi Arabia would maintain production cuts till March 2018.
There were also strong rises for Glencore, up 3.32% and Anglo American, up 3.12%. Standard Chartered climbed 2.86%.
- UK FTSE 100 7,454.37 +0.26%
- Dow 20,968.50 +0.34%
- S&P 500 2,401.54 +0.45%
- Nasdaq 6,144.78 +0.38%
- DAX 30 12,794.33 +0.19%
- CAC 40 5,409.86 +0.08%
- Gold 1,233.50 +0.47%
- Oil WTI 49.13 +2.70%
A sizeable half-yearly loss for travel giant TUI saw the stock sink more than -4.4% to 1,137p. The travel operator has managed to switch some of its sales focus to Greece and Spain to counteract lower Turkish and North African holiday demand.
Next slumped -1.86% to 4,264p while Direct Line was down -1.65% to 350.70p.
But there was no disguising the overall buoyancy: “The Footsie dances to a different tune,” said Laith Khalaf, senior analyst, Hargreaves Lansdown, “because so many of the companies within it are global businesses, and thus not overly reliant on domestic conditions.”
Despite the anxiety over the cyber attack at the weekend US stocks were generally higher with the Dow up 0.40% to 20,980.20 while the Nasdaq pushed more than 0.43% higher to 6,146.90.
The National Cyber Security Centre have strongly urged organisations not to bend to pressure for ransoms following the cyber attack.
Shares in troubled US retailer JC Penney slipped, once more, down 8% today, taking the stock to $4.31.
Back in the UK the EY Item Club has warned that the UK jobs market will slow with unemployment possibly hitting 5.8% by 2019 (currently 4.7%).
“This decline in demand is likely to be matched by a reduction in supply, as the rate of growth in older workers slows and migration levels fall back, even before Brexit, reflecting changes in the relative economic performance of the UK and the EU.”
UK inflation has been on the up since the Brexit 2016 June vote. A new survey from the Chartered Institute of Personnel & Development suggests pay could rise by just 1% in the next 12 months – the smallest rise for three-and-a-half-years.
So more inflation (currently at 2.3%) and pay packet pain en route.
Sticking with the theme of Brexit, US investment bank JP Morgan has confirmed the purchase of a new Dublin office building that will hold up to 1,000 staff.
Some of this new space may be used to house JP Morgan employees relocating from London as Britain quits the EU.
The pound was down slightly against the euro at 1.1766 while it appreciated 0.23% to 1.2919 against the dollar, still substantially below the psychologically important 1.30 ceiling however.
City financial analysts have suggested much of the pound’s rise is now priced in by the market and that future upside could be more limited than has recently been suggested.