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FTSE 100's record-breaking run continues | FTSE 100's record-breaking run continues |
(about 5 hours later) | |
The UK's stock market started the year in positive mood, closing at a record high on its first day of trade. | |
After closing at a record level of 7,142.83 on the final trading day of 2016, the FTSE 100 rose another 0.5% to close at 7,177.89. | |
"No January blues for equity markets as traders in London have returned to their desks in optimistic mood," said Neil Wilson at ETX Capital. | "No January blues for equity markets as traders in London have returned to their desks in optimistic mood," said Neil Wilson at ETX Capital. |
"The FTSE is still enjoying the momentum from last week's Santa rally." | "The FTSE is still enjoying the momentum from last week's Santa rally." |
Banks and financial companies were the strongest performers with stock broker Hargreaves Lansdown up 5% and the bank Barclays up 3.78%. | |
Changes to broker ratings were behind some of the day's biggest moves. Intercontinental Hotels Group rose 1.3% after Barclays raised its rating on the company to "overweight". | |
But shares in Halfords and Next were both hit by downgrades from Deutsche Bank. Halfords fell 5.6% after Deutsche cut its rating on the company to "sell" from "hold". | |
Next - which is due to release a trading update on Wednesday - fell 4.2% after Deutsche Bank downgraded its rating on the retailer to "hold" from "buy". | |
A stronger than expected survey of the UK's manufacturing sector boosted the pound. The latest Markit/CIPS purchasing managers' index for manufacturing suggested activity in the sector hit a two-and-a-half-year high last month. | A stronger than expected survey of the UK's manufacturing sector boosted the pound. The latest Markit/CIPS purchasing managers' index for manufacturing suggested activity in the sector hit a two-and-a-half-year high last month. |
The pound rose 0.2% against the euro to €1.1766, although against the dollar it slipped by 0.17% to $1.2256. |