London’s leading shares ended the day higher but eased from intra-day peaks as sterling weakness and bumper May manufacturing numbers were marginally offset by rising eurozone inflation data.
The benchmark FTSE 100 closed Tuesday up 0.8%, at 7,080.46, while the FTSE 250 made similar gains to end the day at an all-time 22,874.99 high.
Inflation in the eurozone rose to 2% last month with prices pushed up by a very strong rise in energy prices from a year ago. That puts eurozone inflation at its highest level since October 2018.
In the UK, the IHS Markit/CIPS UK Manufacturing Purchasing Managers' Index rose to 65.6 in May from 60.9 in April. While a little lower than the preliminary ‘flash’ reading of 66.1, it still marked the highest since the survey started in 1992 and sends a strong message that the UK economic recovery has legs.
The pound fell 0.3% or so against both the dollar and euro giving the UK’s blue-chip companies an extra boost since they make around 70% of their revenues overseas. Commodity prices strength also helped, lifting mining UK-listed stocks, such as Anglo American (AAL), BHP (BHP), Glencore (GLEN) and Rio Tinto (RIO).
In New York, US markets were mixed with the Dow up around 0.3% but the Nasdaq drifting 0.14% lower, while the S&P 500 was largely flat at 4,205 as the UK markets closed.
Cryptocurrency bitcoin continued it modes recent recovery to hit around $36,456.30, although this remains sharply down on the near-$60,000 levels seen early in May.
News of surging house prices thanks to the stamp duty holiday rush sent shares in Barratt Developments (BDEV) and Persimmon (PSN) higher too, bid up 2% to 774p and 2.5% to £32.38.
BOOST FOR BIFFA
Waste management company Biffa (BIFF) rallied 2.5% to 300.5p, despite swinging to a full-year loss, on news the group ended the financial year to March 2021 with ‘results ahead of our expectations’ and that it is ‘strongly positioned for the post-pandemic recovery’.
The company added that its agreement to acquire Viridor’s collections business and certain recycling assets is ‘another significant step for Biffa, further accelerating the delivery of our growth strategy’.
Wickes (WIX), the DIY chain recently spun out of Travis Perkins, jumped 5% to 268p on guiding for an adjusted full-year profit within the top end of market expectations following a jump in year-to-date sales.
The company said the current range of analysts’ expectations for full-year adjusted pre-tax profit were £55 million-to-£74 million.
Elsewhere, sportswear retailer JD Sports Fashion (JD.) improved 0.4% to 948.8p after denying media reports that executive chairman Peter Cowgill is set to depart.
‘JD can confirm to both investors and to its international brand partners that the board is not engaged in a process to recruit a Chief Executive Officer or Chairman,’ the company said.
‘JD can also confirm that it is continually reviewing the depth of its management team to ensure that the senior operational leadership team in the business has the necessary skills and experience to exploit the ongoing global development opportunities,’ continued the retailer.
IN OTHER NEWS
Enterprise software group Micro Focus (MCRO) accelerated earlier gains to rise 0.6% to 523p on the appointment of Matt Ashley as its new chief financial officer, to replace Brian McArthur-Muscroft at the end of June.
Ashley was previously CFO of gambling company William Hill and also had held senior roles at bus company National Express.
Russia-focused gold miner Petropavlovsk (POG) firmed 2% to 25.44p on news it has technically launched a floatation plant for processing ore, slightly ahead of a mid-year target.
The Pioneer floatation plant is Petropavlovsk’s second facility for processing refractory gold ore and producing flotation concentrate.
Advertising firm M&C Saatchi (SAA:AIM) rallied 10% to 143.5p as it upgraded its annual profit forecasts after winning new work from the likes of the UK Census campaign and dating app Tinder.
Scottish house builder Springfield Properties (SPR:AIM) jumped 11% to 165p on guiding for annual profit and revenue ‘significantly’ ahead of market expectations.
Flooring firm Victoria (VCP:AIM) improved 2% to £10.25 on news it has achieved ‘double-digit percentage increases’ in trading in 2021 compared to 2019. The company said comparatives with 2020 were meaningless due to complete lockdowns due to the pandemic.
‘The board confirms that trading continues to be very strong across all of Victoria’s geographies and product groups,’ said the company.
‘Encouragingly, leading indicators, such as housing transactions, savings rates, and consumer confidence, suggest that the current high levels of consumer demand for Victoria’s products will be sustained for the foreseeable future.’
