(Sharecast News) – London stocks managed to climb back into positive territory by the close on Thursday, after Joe Biden was confirmed by Congress as the 46th President of the US.
The FTSE 100 finished 0.22% higher at 6,856.96, and the FTSE 250 was 0.17% firmer at 21.009.86.
Sterling was in a mixed state, last trading 0.38% weaker against the dollar at $1.3556, but strengthening 0.07% on the euro to 1.1048.
“Yesterday’s chaos in Washington has not affected the global rebound in equities, which have made further gains now that Joe Biden is the undisputed winner of the US election and has control of the Senate as well as the lower house,” said IG chief market analyst Chris Beauchamp.
“Once again the Dow has crossed above 31,000, while in Europe the DAX becomes the latest market to clock up a big round number with its move above 14,000 for the first time.”
Beauchamp said that, in a sign of how broad-based the rally was, technology stocks were leading on Wall Street after being Wednesday’s laggards, with hopes of a cyclical rebound lifting all boats.
“US stocks continue to be the global favourite, with plenty of inflows that ultimately imply that hedging from asset managers around the globe will continue to bear down on the US dollar, providing yet another tailwind for this seemingly-unstoppable equity rally.”
On home shores, a survey showed that house building underpinned the UK construction sector in December.
The IHS Markit/CIPS construction purchasing managers’ index dipped to 54.6 in December from 54.7 in November.
That was a touch below expectations for a reading of 55.0, but above the 50.0 mark that separates contraction from expansion for the seventh month in a row.
House building was the biggest contributor, while commercial activity also expanded, although the rate of growth eased to its lowest since the recovery began last June.
Civil engineering was the weakest-performing category, with activity falling for the fourth time in the past five months.
“Overall output growth has slowed in comparison to the catch-up phase last summer, but now it is encouraging to see the recovery driven by new projects and stronger underlying demand,” said Tim Moore, economics director at IHS Markit.
“A sustained improvement in construction order books resulted in a rise in employment numbers for the first time in nearly two years and the most optimistic growth expectations since April 2017.”
In equity markets, Trainline lost 6.83% after saying it was selling £150m of convertible bonds to shore up its finances against a potential extended Covid-19 downturn in ticket sales.
IP Group slumped 8.65% after Invesco sold 61.9m shares in the company in a placing at 100.5p each.
Mitchells & Butlers fell 3.16% after saying it was planning to raise capital from shareholders with no pubs trading and the company burning through up to £40m a month of cash during the Covid-19 lockdown.
Going the other way, UK supermarket chain Sainsbury’s rallied 6.88% as it lifted profit forecasts after a booming festive period as Britons treated themselves to champagne and steaks in response to pandemic restrictions on the size of gatherings and online orders hit record levels.
Sainsbury’s said it now expected to report underlying profit before tax of at least £330m in the year to March 2021 against previous expectations of £270m and compared with £586m a year ago after forgoing business rates relief of £410m.
Building materials group CRH was 3.61% higher after an upgrade to ‘buy’ at Societe Generale, which said it was set to benefit from a Democratic majority in the US Senate.
Market Movers
FTSE 100 (UKX) 6,856.96 0.22%
FTSE 250 (MCX) 21,009.86 0.17%
techMARK (TASX) 4,195.42 -0.04%
FTSE 100 – Risers
Sainsbury (J) (SBRY) 249.90p 7.48%
BT Group (BT.A) 147.70p 4.71%
CRH (CRH) 3,507.00p 3.70%
Ferguson (FERG) 9,240.00p 3.66%
Mondi (MNDI) 1,886.50p 3.40%
Imperial Brands (IMB) 1,649.00p 3.35%
Rio Tinto (RIO) 6,310.00p 3.19%
Smith (DS) (SMDS) 409.30p 2.97%
Barratt Developments (BDEV) 689.00p 2.32%
Anglo American (AAL) 2,819.00p 2.27%
FTSE 100 – Fallers
British Land Company (BLND) 465.50p -4.77%
Auto Trader Group (AUTO) 583.40p -4.33%
Rightmove (RMV) 626.80p -2.79%
Pearson (PSON) 682.60p -2.23%
WPP (WPP) 823.60p -1.84%
Relx plc (REL) 1,867.00p -1.79%
Hikma Pharmaceuticals (HIK) 2,623.00p -1.76%
JD Sports Fashion (JD.) 840.20p -1.71%
M&G (MNG) 200.20p -1.57%
Associated British Foods (ABF) 2,230.00p -1.41%
FTSE 250 – Risers
FirstGroup (FGP) 79.95p 13.48%
Energean (ENOG) 872.70p 8.54%
Network International Holdings (NETW) 322.60p 6.26%
Watches of Switzerland Group (WOSG) 580.00p 5.45%
Cineworld Group (CINE) 67.84p 4.85%
National Express Group (NEX) 253.20p 4.63%
C&C Group (CCR) 239.50p 4.59%
Future (FUTR) 1,872.00p 4.58%
Chemring Group (CHG) 303.00p 4.48%
Signature Aviation (SIG) 417.90p 4.47%
FTSE 250 – Fallers
IP Group (IPO) 101.40p -8.65%
Trainline (TRN) 444.60p -6.83%
Pets at Home Group (PETS) 416.40p -3.88%
Mitchells & Butlers (MAB) 229.50p -3.37%
TP ICAP (TCAP) 238.40p -3.33%
Wizz Air Holdings (WIZZ) 4,336.00p -3.00%
CMC Markets (CMCX) 424.50p -2.86%
Ascential (ASCL) 375.60p -2.80%
Helios Towers (HTWS) 150.80p -2.58%
4Imprint Group (FOUR) 2,485.00p -2.55%
