The FTSE 100 was up a notch, while the FTSE 250 index was healthily in the green on Friday morning, ahead of flash UK purchasing managers’ index data.
UK Chancellor Rachel Reeves said she would be tabling an amendment to the plans for taxing non-domiciled residents after ‘listening to the concerns’ they raised. The changes will increase the temporary repatriation facility, which allows non-doms to bring money into the UK without paying significant taxes on it.
The government said the finance bill would bring forward the final policy but that the amendment ‘doesn’t change the overall approach, which is that we are replacing this outdated regime’.
Consumer confidence in the UK has meanwhile suffered a steep drop amid signs that households see ‘dark days ahead’ for the economy, according to GfK’s Consumer Confidence Index survey.
Elsewhere, as Swissquote’s Ipek Ozkardeskaya noted, ‘US President Donald Trump said – in his virtual speech in Davos – that he would push for further interest rate cuts and ask Opec to lower crude prices. He also brought the tariff talk on the table, saying that the EU countries must consider bringing some production to the US to avoid penalties...Except for the aim of lowering energy prices, most of Trump’s wishes are inflation-boosters.
‘PS: interfering with a central bank’s independence has never been a good idea. If the monetary policy starts serving the government goals – so explicitly – you end up like Turkey – roasted.’
The FTSE 100 index opened up 3.38 points at 8,568.58. The FTSE 250 was up 144.12 points, 0.7%, at 20,664.51, and the AIM All-Share was down 1.34 points, 0.2%, at 719.52.
The Cboe UK 100 was flat at 859.25, the Cboe UK 250 was up 0.7% at 18,045.97, and the Cboe Small Companies was down 0.1% at 16,020.25.
Antofagasta led the FTSE 100, rising 4.4% after HSBC maintained a ’reduce’ rating but rose the price target to 1,400 pence from 1,300p.
Retailer Marks & Spencer led the laggers, down 1.3%.
Burberry far outstripped fellow FTSE 250 constituents, surging up 16%.
The luxury retailer reported a 7% reduction in retail revenue for its third quarter, but said it expects second-half results to ‘broadly offset the first-half adjusted operating loss, notwithstanding the uncertain macroeconomic environment’. It also proclaimed confidence in its long-term plans to ‘improve our performance’.
Harbour Energy lost 3.0% after Goldman maintained a ’sell’ rating and cut its price target to 245p from 260p.
Among smaller caps, TheWorks jumped 5.3%.
The retailer reported a narrowed pretax loss of £6.9 million for its first half year, while revenue increased 1.3% to £124.2 million.
Also, it pronounced itself on track to deliver its full-year market consensus estimate of £8.5 million in adjusted earnings before interest, tax, depreciation and amortisation.
In European equities on Friday, the CAC 40 in Paris was up 0.8%, while the DAX 40 in Frankfurt was up 0.3%.
The pound was quoted at $1.2399 early on Friday in London, higher compared to $1.2343 at the equities close on Thursday. The euro stood at $1.0487, higher against $1.0409. Against the yen, the dollar was trading higher at JP¥155.27 compared to JP¥156.02.
In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.1%. In China, the Shanghai Composite was up 0.7%, while the Hang Seng index in Hong Kong was up 1.7%. The S&P/ASX 200 in Sydney closed up 0.4%.
In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.9%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.2%.
Brent oil was quoted lower at $77.55 a barrel early in London on Friday from $78.14 late Thursday.
Gold was quoted higher at $2,772.12 an ounce against $2,756.70.
Still to come on Friday’s economic calendar, flash composite PMI figures are still due from the UK and US.
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