Yesterday’s momentum for the FTSE 100 continued to build with the UK’s main share index hitting another high at 7,522.03, up almost 1%. The index climb was a part result of a slip in sterling, flattering revenues for large companies with earnings overseas.
Another component was the bullish performance (again) of oil and commodity stocks, with strong gains for Fresnillo up 2.96% to 1,564.05p and Rio Tinto, up 2.67% to 3,100.50p.
- UK FTSE 100 7,522.03 +0.91%
- Dow 20,976.29 -0.03%
- S&P 500 2,400.22 -0.09%
- Nasdaq 6,152.40 +0.04%
- DAX 30 12,797.37 -0.08%
- CAC 40 5,402.60 -0.27%
- Gold 1,238.00 +0.30%
- Oil WTI 48.94 +0.18%
However telecoms player Vodafone was the out-and-out FTSE 100 winner climbing almost 4% to 219.53p following a positive outlook update this morning.
A grim day, in contrast, though for Hargreaves Lansdown. Key rival US investment operator Vanguard is launching a tracker war in the UK with some fees capped at 0.15% a year.
Responding to the news, shares in online personal investment player Hargreaves Lansdown sank more than 8% to 1,328.50p.
Not such good news also for easyJet following steeper-than-expected losses – £212m – this morning. Shares in easyJet fell more than 7% to 1,216p in trading today.
Earlier this morning there was the release of new ONS inflation figures: consumer price index (CPI) inflation climbed to 2.7% in April, higher than originally forecast.
This compares with 2.3% in March. Some of the blame was pinned on rising clothes prices and vehicle excise duty. The Bank of England warned it wasn’t expecting inflation to get any lower soon, likely peaking close to 3% by year end it said.
Over in the US the S&P 500 and Nasdaq both touched intraday peaks due to consumer and tech stocks rallying.
As to currencies the euro – the day’s best performing currency by some margin – lifted above $1.1 as anxiety increased about the risk of US interest rate rises. Against the dollar the euro was at 1.10700, up 0.88% while sterling was up 0.05% at 1.29090.
The new win of Macron in France has given investors more reason to buy the euro; it looks increasingly difficult for the ECB to maintain low rates longer term.