FTSE close: US shares follow London's rally
17.00 The FTSE 100 blue-chip index closed 17.2 points up today at 5,261.6 - boosted by strong performances in mining stocks.
The Dow Jones was last 28.04 points up at 10433.87 on the back of better-than-expected US retail sales figures, showing improved consumer confidence in early December.
In London, miners were among the top risers, with Vedanta up 3.33% at 2,392p and Fresnillo rising 2.91% to 813p.
TUI Travel also had a good day - up 3.23% to 258.6p.
Meanwhile the banks continued to take a hit with Lloyds Banking Group and RBS down 3.44% and 2.49% respectively. HSBC fell 1.35% to 703.4p.
15.45 The FTSE 100 eased back in flat trading and stood 34.36 points higher at 5278.73.
14.15: The Dow Jones rose on opening after news that China's exports improved. The gains were backed up by US domestic data that showed retail sales in the world's largest economy rose by a greater-than-expected 1.3% in November.
The Dow Jones Indistrial Average Index was 54 points higher at 10.456.
David Buik of BGC Partners said: 'China played a blinder this morning with some stunning economic data, particularly concerning manufacturing output where factory orders increased by 19% last month.'
The FTSE 100 was 44.62 points higher at 5288.99.
13.00: The pound eased higher against the dollar, to $1.6290 having started the day at $1.6259.
Confidence in Sterling cam after analysts from Moody's said the AAA ratings of Britain and the United States were not under threat of a downgrade right now, but a worst case scenario foresaw a cut by 2013.
Meanwhile, by 1pm the FTSE 100 stood 54.12 points higher at 5298.49.
11.45: The FTSE 100 was up 41 points at 5285. Mining was responsible for 16 points, oil and gas 5 and pharmaceuticals for 2.5 points.
Broker BGC said: 'We are expecting a bright opening in New York. Retail sales excluding autos, are expected to rise for the third month running by 0.5%.'
11.15: Shares in New York are expected to get in on the Friday feeling with the Dow Jones Industrial expected to open up 6060 points at 10,462, according to broker BGC.
10.55: Charles Stanley initiated coverage of online fashion retailer Asos with a 'sell' rating. The broker described ASOS as a 'very good company' but that the stock is 'priced for perfection'.
'(This) makes it vulnerable to the non-delivery (which we see as likely) of continuous upgrades to consensus earnings and the heightened execution risk surrounding the major capacity planning projects the company is currently undertaking,' the broker says.
Shares in ASOS were down nearly 2%, off 7.25p at 464p. They have rallied from 240p a year ago.
10.50: Shares in Carillion gained 2.8% after its trading update (see below). Panmure Gordon repeating its 'buy' rating on the stock.
Asos model
'There is a strong underlying message with this update, as double digit earnings growth has been achieved despite tough markets and PFI (private finance initiative) disposals,' Panmure said. The broker says the valuation is attractive relative to its construction and support services peers.
10.45: Ryanair shares flew 3% higher following a broker upgrade. It was moved to 'outperform' from 'in-line' by Cazenove. Three reasons were given:
• an order for a further 100 to 200 Boeing 737 aircraft is still feasible, and would have a defining impact on the group's strategy. Failure to secure an order could see zero capacity growth from 2013 and Ryanair concentrating on running the business for cash.
• The rating was cut to 'in-line' in July due to a mismatch between consensus forecasts and company guidance, but this has now come more into line. Risk of further downgrades is now much diminished.
• Ryanair's present valuation of a 2010 calendar adjusted price earnings relative of 13.3 times is in line with the market, and is below a historic range of around a 20% to 30% premium.
Meanwhile easyJet shares were down again, off 1.4%, following news CEO Andy Harrison is to quit. Cazenove cut its rating to 'in-line' from 'outperform'. The broker says the news does create a degree of uncertainty that is likely to hang over easyJet's share price performance until it is resolved.
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09:00: A startling rally in Asia set up dealers for a bullish day in London. Japan's Nikkei 225 index climbed 2.5% after a weaker yen lifted exporters. More significantly, encouraging industrial output data from China spurred buying interest.
Many economists are pinning hopes on China nursing the world economy back to health, hopefully with increasing demand from its own consumers. But a boost in its own output is a start, possibly suggesting increased demand from the West.
The FTSE 100 index followed suit as the top flight built on yesterday's rise of 40 points to add another 56.2 points to 5300.5 in the first hour of trading.
Mining stocks led the rally after coming under pressure in recent days over concerns for the speed and strength of the global recovery. Xstrata set the pace with a gain of 33p to 1065p, while Kazakhmys added 39p to 1265p. The next important landmark for investors will be consumer confidence and retail sales figures due later in the session in the US.
In a quiet session for corporate news, HMV gave an update, reporting a smaller half-year loss than last year - £24.9m compared with £27.5m.
Like-for-like sales in the UK and Ireland were up 1.6% in the six months to 24 October. Sales across the group, including new stores, climbed 5.6% to £797m, while like-for-like sales were down 2.1%. But its Waterstone's book chain suffered a 5.1% sales fall. The company may, however, benefit from the demise of rival Borders.
Analysts said the figures were in line with expectations. The shares were up, 2p, and then they were down, off 0.5p at 106p by 9am.
Services group Carillion added 8.5p to 303.8p after it reported a strong order book and said its Middle East business continued to trade well, despite exposure to the debt-troubled emirate of Dubai.
Back in the UK, gaming group Rank said it had submitted a claim for VAT it overpaid on bingo from July 2004. If successful, the company reckons it should get back £16m (before interest) from HMRC.
Pawnbroker Albemarle & Bond, which has benefited from the rise in gold prices to record levels, appointed a new finance chief this morning. Gold hit a record $1,227 an ounce last week.
Liam Moran replaces David Pattinson, who has been in the job for the last seven years and wants to move on to 'new challenges'. Moran, 41, joins the company from B&Q where he was director of commercial and supply chain finance. He previously worked for Kingfisher. He will join Albemarle on Monday.
One of Britain's biggest pawnbrokers, Albemarle has seen profits surge as consumers cash in old gold jewellery to take advantage of soaring gold prices. Gold climbed above $1,135 an ounce this morning after a week of almost consistent falls.
• Additional reporting from Reuters and Russell Lynch and Graeme Evans, Press Association
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