London close: Stocks move higher as Fed concerns ease
London stocks finished higher at the end of the week as investors welcomed news of a bipartisan agreement on a package of infrastructure spending in the US.
"European markets are more mixed, but the FTSE 100 sits in positive territory once more as it steadily recoups last week’s losses; what has been remarkable is how indices globally have shrugged off the Fed’s apparent change of outlook (which has been careful walked back to an extent this week), and have resumed the march higher, presumably following the dangling carrot of economic growth as the world returns to normal," said IG chief market analyst, Chris Beauchamp.
The FTSE 100 was up 0.37% or 26.10 points to 7,136.07, while the second-tier index put on 0.60% to finish at 22,646.01.
On home shores, a survey released earlier by the Confederation of British Industry showed that retail sales rose in June as the UK's vaccination programme boosted consumer confidence.
The CBI’s measure of the volume of sales increase to +25 from +18 in May, hitting its best level since August 2018. The balance is the difference between the number of retailers who report higher sales and those who report lower sales.
CBI principal economist Ben Jones said: "After a generally gloomy 2021 so far, the sun finally shone for retailers in June, with seasonal sales volumes the strongest since November 2016.
"This was the latest sign that the success of the vaccination programme is feeding through to stronger consumer confidence which, along with the re-opening of hospitality, is encouraging shoppers back onto the streets."
However, he also cautioned that the sector remains a long way from a full recovery.
Significantly, across the Pond, the Department of Commerce reported a slightly slower than expected increase in personal consumption expenditure prices.
In equity markets, JD Sports was the standout gainer on the FTSE 100 following well-received fourth-quarter results from Nike in the US.
Irish building materials group CRH and equipment rental firm Ashtead, both of which do business in the US, rallied on news of the infrastructure deal. Ashtead and CRH were also lifted by positive broker notes.
Credit Suisse hiked its price target on outperform-rated Ashtead to 6,000p from 4,100p, "to reflect, primarily, higher long-term growth opportunity” given the company’s “positioning in attractive end markets". Meanwhile, Berenberg upped CRH to ‘buy’ from ‘hold’.
Advertising agency WPP also rose, following an upgrade to 'neutral' from 'underperform' out of Credit Suisse.
Elsewhere, UDG Healthcare was a little firmer after it said US private equity firm Clayton Dubilier & Rice was considering an improved final offer of 1,080p a share for the company.
Travel-related stocks were in the red following disappointment over the government’s travel guidelines. On Thursday, 16 destinations were added to the travel green list, including the Balearic Islands, Madeira, Malta and Barbados. The government also added the Dominican Republic, Eritrea, Haiti, Mongolia, Tunisia and Uganda to its red list.
British Airways owner IAG, InterContinental Hotels, Premier Inn owner Whitbread, engine maker Rolls-Royce, Upper Crust owner SSP, cruise operator Carnival and travel company Tui were all weaker.
Market Movers
FTSE 100 (UKX) 7,136.07 0.37%
FTSE 250 (MCX) 22,646.01 0.60%
techMARK (TASX) 4,478.52 0.35%
FTSE 100 - Risers
JD Sports Fashion (JD.) 952.60p 4.38%
WPP (WPP) 1,002.50p 2.34%
BHP Group (BHP) 2,160.00p 2.13%
CRH (CDI) (CRH) 3,766.00p 2.11%
Ashtead Group (AHT) 5,410.00p 2.08%
Weir Group (WEIR) 1,920.00p 1.59%
Intermediate Capital Group (ICP) 2,201.00p 1.52%
Hikma Pharmaceuticals (HIK) 2,419.00p 1.51%
Schroders (SDR) 3,576.00p 1.47%
DCC (CDI) (DCC) 5,970.00p 1.46%
FTSE 100 - Fallers
Flutter Entertainment (CDI) (FLTR) 13,755.00p -4.28%
M&G (MNG) 234.30p -2.82%
Entain (ENT) 1,800.00p -2.60%
International Consolidated Airlines Group SA (CDI) (IAG) 187.48p -2.45%
Vodafone Group (VOD) 123.00p -1.84%
Whitbread (WTB) 3,196.00p -1.66%
InterContinental Hotels Group (IHG) 4,980.00p -1.23%
Royal Mail (RMG) 581.80p -1.22%
Rolls-Royce Holdings (RR.) 106.50p -1.19%
Relx plc (REL) 1,937.50p -0.77%
FTSE 250 - Risers
Ultra Electronics Holdings (ULE) 2,300.00p 6.68%
Dr. Martens (DOCS) 439.60p 5.27%
Wood Group (John) (WG.) 217.20p 5.13%
Liontrust Asset Management (LIO) 1,776.00p 4.84%
Chrysalis Investments Limited NPV (CHRY) 266.00p 4.31%
Virgin Money UK (VMUK) 204.20p 3.50%
Micro Focus International (MCRO) 541.00p 3.44%
Indivior (INDV) 148.90p 3.39%
Auction Technology Group (ATG) 1,198.00p 3.28%
Hill & Smith Holdings (HILS) 1,520.00p 3.26%
FTSE 250 - Fallers
Crest Nicholson Holdings (CRST) 411.80p -5.38%
National Express Group (NEX) 278.80p -2.92%
SSP Group (SSPG) 291.40p -2.25%
Playtech (PTEC) 468.40p -2.01%
888 Holdings (888) 391.00p -1.91%
easyJet (EZJ) 955.00p -1.49%
Cairn Energy (CNE) 162.80p -1.45%
Capita (CPI) 38.59p -1.43%
Drax Group (DRX) 424.20p -1.26%
Trustpilot Group (TRST) 346.20p -1.26%