London close: Stocks firmly higher as Americans head to polls
London stocks closed firmly higher on Tuesday, with banks and housebuilders underpinning the gains as investors braced for the US presidential election.
The FTSE 100 ended the session up 2.33% at 5,786.77, and the FTSE 250 was 1.81% higher at 17,491.70.
Sterling was stronger against both of its major trading pairs as well, last rising 1.01% on the dollar to change hands at $1.3047, and advancing 0.31% against the euro to €1.11130.
“Equity markets are enjoying a very bullish move today as the US presidential election has taken centre stage, and for now it has eclipsed the health crisis and the restrictions,” said CMC Markets analyst David Madden.
“Stocks are building on yesterday’s gains as an absence of negative news has assisted the mood.”
Madden said the non-stop headlines about the battle for the White House had acted as “a nice distraction” from what was going on in terms of tighter Covid-19 restrictions.
“Stocks enjoyed a very positive move yesterday and that sentiment has been carried into today.
“In London, it is a broad-based rally, as banking, house building, transport, travel, commodity and hospitality stocks are showing gains.”
In equity markets, banks were the standout performers, with Standard Chartered up 3.76%, Barclays adding 5.9% and NatWest 7.29% higher.
Housebuilder Crest Nicholson rallied 16.54% after it said full-year profit was set to be "significantly" ahead of market expectations thanks to positive trading since the end of the spring lockdown, and announced the reinstatement of its dividend.
Other housebuilders followed suit, with Taylor Wimpey, Barratt Developments and Persimmon all higher, by 6.86%, 4.1% and 3.99%, respectively.
RSA Insurance was boosted 5.75% by an upgrade to ‘overweight’ at Morgan Stanley, while oil giant BP was lifted 2.31% by an upgrade to ‘equalweight’ at MS.
Industrial thread maker Coats Group surged 11.03% after it lifted full-year profit guidance after a better-than-expected peak third quarter.
Chemring rose 5.81% as it said adjusted annual operating profit is set to be at the top end of market expectations of between £47m and £53m after trading for the year ended October finished "robustly".
Security services firm G4S pushed up 3.13% as it confirmed that it had rejected a 210p a share takeover offer from US rival Allied Universal.
Associated British Foods reversed earlier losses to close 0.35% above the waterline, after reporting a 40% fall in full-year profits as lockdown closures at its Primark clothing chain offset better performances at its sugar and food ingredients units.
On the downside, Mecca Bingo owner Rank Group was 1.8% weaker, as bingo halls and other gambling venues prepared to close again on Thursday, for the second national lockdown in England.
Market Movers
FTSE 100 (UKX) 5,786.77 2.33%
FTSE 250 (MCX) 17,491.70 1.81%
techMARK (TASX) 3,645.57 1.85%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 84.00p 9.72%
NATWEST GROUP PLC ORD 100P (NWG) 128.80p 7.29%
Taylor Wimpey (TW.) 116.05p 6.86%
Barclays (BARC) 113.08p 5.90%
RSA Insurance Group (RSA) 452.10p 5.75%
British Land Company (BLND) 370.80p 5.58%
Prudential (PRU) 1,010.50p 5.50%
M&G (MNG) 152.35p 5.21%
Intermediate Capital Group (ICP) 1,234.00p 5.20%
Lloyds Banking Group (LLOY) 29.25p 5.08%
FTSE 100 - Fallers
Ocado Group (OCDO) 2,422.00p -1.50%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,636.00p -1.44%
Smith (DS) (SMDS) 289.60p -0.75%
BT Group (BT.A) 100.95p -0.74%
B&M European Value Retail S.A. (DI) (BME) 503.00p -0.24%
Tesco (TSCO) 209.90p -0.24%
Morrison (Wm) Supermarkets (MRW) 163.20p -0.15%
Flutter Entertainment (FLTR) 13,140.00p 0.08%
Vodafone Group (VOD) 106.16p 0.15%
Kingfisher (KGF) 297.30p 0.24%
FTSE 250 - Risers
Crest Nicholson Holdings (CRST) 253.60p 16.54%
Coats Group (COA) 60.40p 11.03%
IWG (IWG) 277.20p 8.79%
Virgin Money UK (VMUK) 100.95p 6.62%
Morgan Sindall Group (MGNS) 1,164.00p 5.82%
Chemring Group (CHG) 273.00p 5.81%
Watches of Switzerland Group (WOSG) 391.50p 5.81%
Mitchells & Butlers (MAB) 163.00p 5.71%
Wetherspoon (J.D.) (JDW) 902.00p 5.50%
Countryside Properties (CSP) 347.40p 5.08%
FTSE 250 - Fallers
C&C Group (CCR) 145.00p -4.48%
Capital & Counties Properties (CAPC) 98.75p -2.75%
Pershing Square Holdings Ltd NPV (PSH) 2,100.00p -1.87%
Contour Global (GLO) 190.20p -1.86%
Rank Group (RNK) 87.20p -1.80%
PureTech Health (PRTC) 250.50p -1.76%
Fidelity China Special Situations (FCSS) 364.50p -1.75%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,636.00p -1.44%
Serco Group (SRP) 110.60p -1.43%
Wood Group (John) (WG.) 216.80p -1.14%