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| FTSE 100 closes at new peak, eurozone jobless rate hits near nine-year low - as it happened | FTSE 100 closes at new peak, eurozone jobless rate hits near nine-year low - as it happened |
| (about 17 hours later) | |
| With Wall Street roaring ahead again, European markets have ended the trading day on a positive note. The positive German economic data has helped sentiment in the eurozone, while the FTSE 100 has hit a new closing high thanks in no small part to a rise in retail shares. The final scores showed: | With Wall Street roaring ahead again, European markets have ended the trading day on a positive note. The positive German economic data has helped sentiment in the eurozone, while the FTSE 100 has hit a new closing high thanks in no small part to a rise in retail shares. The final scores showed: |
| The FTSE 100 finished up 34.51 points or 0.45% at 7731.02 | The FTSE 100 finished up 34.51 points or 0.45% at 7731.02 |
| Germany’s Dax rose 0.13% to 13,385.59 | Germany’s Dax rose 0.13% to 13,385.59 |
| France’s Cac closed up 0.67% at 5523.94 | France’s Cac closed up 0.67% at 5523.94 |
| Italy’s FTSE MIB was 0.7% better at 23,004.98 | Italy’s FTSE MIB was 0.7% better at 23,004.98 |
| Spain’s Ibex ended up 0.27% at 10,426.5 | Spain’s Ibex ended up 0.27% at 10,426.5 |
| In Greece, the Athens market added 0.5% to 841.28 | In Greece, the Athens market added 0.5% to 841.28 |
| On Wall Street, the Dow Jones Industrial Average is currently 122 points or 0.49% higher. | On Wall Street, the Dow Jones Industrial Average is currently 122 points or 0.49% higher. |
| On that note, it’s time to close for the day. Thanks for all your comments, and we’ll be back tomorrow. | On that note, it’s time to close for the day. Thanks for all your comments, and we’ll be back tomorrow. |
| Healthcare and banking stocks are leading the way on Wall Street ahead of what is expected to be a strong reporting season. JP Morgan is the first big bank to report later this week. | |
| The UK’s leading index has made it, closing at a new record high if not quite reaching an intra-day peak. | The UK’s leading index has made it, closing at a new record high if not quite reaching an intra-day peak. |
| The FTSE 100 finished up 34.51 points or 0.45% at 7731.02, beating last Friday’s record close of 7724.22. The intra-day peak of 7733.39 was reached on Monday. David Madden, market analyst at CMC Markets UK, said: | The FTSE 100 finished up 34.51 points or 0.45% at 7731.02, beating last Friday’s record close of 7724.22. The intra-day peak of 7733.39 was reached on Monday. David Madden, market analyst at CMC Markets UK, said: |
| The London market has been helped along by the supermarkets as Marks and Spencer, Sainsburys and Morrisons are in demand on the back of the report from Nielsen which stated all of the ‘big four’ had a positive Christmas period. | The London market has been helped along by the supermarkets as Marks and Spencer, Sainsburys and Morrisons are in demand on the back of the report from Nielsen which stated all of the ‘big four’ had a positive Christmas period. |
| One of the main reasons for stock markets recovering so well since the financial crisis, of course, is the massive support provided by central banks in the form of low interest rates and quantitative easing. Now this support is being gradually and cautiously withdrawn, but could the process speed up, and what effect will it have on share prices? Chris Beauchamp, chief market Analyst at IG, says: | One of the main reasons for stock markets recovering so well since the financial crisis, of course, is the massive support provided by central banks in the form of low interest rates and quantitative easing. Now this support is being gradually and cautiously withdrawn, but could the process speed up, and what effect will it have on share prices? Chris Beauchamp, chief market Analyst at IG, says: |
| Markets continue to make gains even as investors begin to consider the possibilities of more central bank tightening over the coming year and beyond. There are those wondering whether the Bank of Japan’s moves overnight to ease back on bond purchases portends a bigger shift in global markets; if the world’s most assiduous user of quantitative easing is itself easing back on the use of the proverbial punchbowl, will this mean that the others, especially the Fed and the ECB, will start to shift into a higher gear earlier than previously thought? | Markets continue to make gains even as investors begin to consider the possibilities of more central bank tightening over the coming year and beyond. There are those wondering whether the Bank of Japan’s moves overnight to ease back on bond purchases portends a bigger shift in global markets; if the world’s most assiduous user of quantitative easing is itself easing back on the use of the proverbial punchbowl, will this mean that the others, especially the Fed and the ECB, will start to shift into a higher gear earlier than previously thought? |
| At least it must be for the right reasons – only signs of real recovery would get the BoJ to move in the direction of tighter policy, and so for now stocks should remain the best way to play the global economic recovery. | At least it must be for the right reasons – only signs of real recovery would get the BoJ to move in the direction of tighter policy, and so for now stocks should remain the best way to play the global economic recovery. |
| Meanwhile as the UK trading day enters its final straight, the FTSE 100 is tantalisingly near another record closing high. | Meanwhile as the UK trading day enters its final straight, the FTSE 100 is tantalisingly near another record closing high. |
| It is currently at 7725 which would not be an intra-day peak but would mark a new record close, just. Connor Campbell, financial analyst at Spreadex, said: | It is currently at 7725 which would not be an intra-day peak but would mark a new record close, just. Connor Campbell, financial analyst at Spreadex, said: |
| While the FTSE ummed and ahhed over hitting new highs, the Dow Jones wasn’t as shy, opening at a fresh record peak. | While the FTSE ummed and ahhed over hitting new highs, the Dow Jones wasn’t as shy, opening at a fresh record peak. |
| The Dow wasn’t that explosive after the bell rang on Wall Street. Yet, a 70 point rise left it tickling 25350, continuing its remarkable, seemingly unending climb. As for the afternoon’s meagre data offerings, just like its non-farm cousin last Friday, the latest JOLTS job openings reading came in below estimates, at 5.88 million compared to the downward revised 5.92 million seen the month previous. | The Dow wasn’t that explosive after the bell rang on Wall Street. Yet, a 70 point rise left it tickling 25350, continuing its remarkable, seemingly unending climb. As for the afternoon’s meagre data offerings, just like its non-farm cousin last Friday, the latest JOLTS job openings reading came in below estimates, at 5.88 million compared to the downward revised 5.92 million seen the month previous. |
| The FTSE rose a half a percent throughout the day, fuelled by the Morrisons-led gains in the supermarket sector, sterling’s 0.4% and 0.1% declines against the dollar and euro respectively, and a healthy set of commodity stocks. This once again leaves the UK index around the 7720 to 7730 mark, tantalisingly close to another record high – hopefully Sainsbury’s Christmas update tomorrow will help the FTSE maintain the momentum it seems to have found today. | The FTSE rose a half a percent throughout the day, fuelled by the Morrisons-led gains in the supermarket sector, sterling’s 0.4% and 0.1% declines against the dollar and euro respectively, and a healthy set of commodity stocks. This once again leaves the UK index around the 7720 to 7730 mark, tantalisingly close to another record high – hopefully Sainsbury’s Christmas update tomorrow will help the FTSE maintain the momentum it seems to have found today. |
| Over in the Eurozone the DAX and CAC varied in their enthusiasm. The former nudged just 0.1% higher despite a far better than forecast German industrial production figure; the latter, meanwhile, found itself trading at a 2 month peak after jumping half a percent. | Over in the Eurozone the DAX and CAC varied in their enthusiasm. The former nudged just 0.1% higher despite a far better than forecast German industrial production figure; the latter, meanwhile, found itself trading at a 2 month peak after jumping half a percent. |
| Bitcoin is on the slide despite the earlier comments from JP Morgan chief executive Jamie Dimon that he regrets calling the cryptocurrency a fraud last September. | Bitcoin is on the slide despite the earlier comments from JP Morgan chief executive Jamie Dimon that he regrets calling the cryptocurrency a fraud last September. |
| Bitcoin is currently down nearly 2% at $14,708. On Monday two US companies withdrew proposals to launch bitcoin exchange-traded funds, citing concerns by the Securities and Exchange Commission. | Bitcoin is currently down nearly 2% at $14,708. On Monday two US companies withdrew proposals to launch bitcoin exchange-traded funds, citing concerns by the Securities and Exchange Commission. |
| If the FTSE 100 is not quite there, US markets have opened at new high. | If the FTSE 100 is not quite there, US markets have opened at new high. |
| Bolstered by hopes of strong economic growth, the Trump tax reforms and the expectation of a positive reporting season which starts this week, the Dow Jones Industrial Average has climbed 0.26% to 25,345. The S&P 500 opened up 0.13% at a record 2751 while the Nasdaq Composite is 0.24% better at a new peak of 7174. | Bolstered by hopes of strong economic growth, the Trump tax reforms and the expectation of a positive reporting season which starts this week, the Dow Jones Industrial Average has climbed 0.26% to 25,345. The S&P 500 opened up 0.13% at a record 2751 while the Nasdaq Composite is 0.24% better at a new peak of 7174. |
| Oil prices continue to move higher, shrugging off reports that Iran’s oil minister had said that Opec did not want to see crude much above $60 a barrel. | Oil prices continue to move higher, shrugging off reports that Iran’s oil minister had said that Opec did not want to see crude much above $60 a barrel. |
| At the moment, Brent crude is up 0.43% at $68.07 a barrel while West Texas Intermediate is up 0.68% at $62.15. But the rally in oil prices to their highest level since May 2015 might fizzle out before too long, says Fawad Razaqzada, technical analyst at Forex.com: | At the moment, Brent crude is up 0.43% at $68.07 a barrel while West Texas Intermediate is up 0.68% at $62.15. But the rally in oil prices to their highest level since May 2015 might fizzle out before too long, says Fawad Razaqzada, technical analyst at Forex.com: |
| Overnight saw the price of WTI crude hit its best level since May 2015, before falling back a little. Oil prices have hit the ground running at the start of this year, continuing their recovery from the middle of 2017, as global crude stockpiles fell from record high levels and due to good compliance with the production cuts by OPEC and Russia. Given that the production agreement has been extended to the end of 2018 at OPEC’s last meeting, the market clearly expects crude inventory levels to drop further. | Overnight saw the price of WTI crude hit its best level since May 2015, before falling back a little. Oil prices have hit the ground running at the start of this year, continuing their recovery from the middle of 2017, as global crude stockpiles fell from record high levels and due to good compliance with the production cuts by OPEC and Russia. Given that the production agreement has been extended to the end of 2018 at OPEC’s last meeting, the market clearly expects crude inventory levels to drop further. |
| But with OPEC set to review the duration of oil output cuts based on fundamentals at its next meeting in June, there is a possibility they could end the agreement sooner than expected. What’s more, oil prices are now at levels many regard as being high enough for US shale producers to accelerate drilling and production in the coming months. This could discourage OPEC and Russia to maintain their oil supply collusion until the end of the year, as many producers within OPEC itself won’t be happy to lose further market share to the US. Thus, there is a risk that the agreement could end prematurely, potentially resulting in another supply war. | But with OPEC set to review the duration of oil output cuts based on fundamentals at its next meeting in June, there is a possibility they could end the agreement sooner than expected. What’s more, oil prices are now at levels many regard as being high enough for US shale producers to accelerate drilling and production in the coming months. This could discourage OPEC and Russia to maintain their oil supply collusion until the end of the year, as many producers within OPEC itself won’t be happy to lose further market share to the US. Thus, there is a risk that the agreement could end prematurely, potentially resulting in another supply war. |
| Leading UK shares are edging to within a hair’s breadth of a new intra-day peak, with the FTSE 100 up 0.47% at 7733.12. | Leading UK shares are edging to within a hair’s breadth of a new intra-day peak, with the FTSE 100 up 0.47% at 7733.12. |
| That would beat the record of 7733.39 set as long ago as .... yesterday. Retailers are leading the way after the better than expected Christmas trading update from Morrison while technology group Micro Focus has recovered some of the ground lost following disappointment with Monday’s half year results. | That would beat the record of 7733.39 set as long ago as .... yesterday. Retailers are leading the way after the better than expected Christmas trading update from Morrison while technology group Micro Focus has recovered some of the ground lost following disappointment with Monday’s half year results. |
| If it stays at this level it will manage a new closing high. The previous level is 7724.22, set last Friday. | If it stays at this level it will manage a new closing high. The previous level is 7724.22, set last Friday. |
| More retail news: troubled burger chain Byron’s is reportedly planning to shut stores in a bid to cut its rental bill and keep operating. | More retail news: troubled burger chain Byron’s is reportedly planning to shut stores in a bid to cut its rental bill and keep operating. |
| Sky News’s Mark Kleinman reports: | Sky News’s Mark Kleinman reports: |
| Sky News has learnt that the company will launch a so-called company voluntary arrangement (CVA) on Wednesday that will require the approval of creditors including landlords. | Sky News has learnt that the company will launch a so-called company voluntary arrangement (CVA) on Wednesday that will require the approval of creditors including landlords. |
| The CVA is critical to Byron’s future because a new injection of cash into the business, agreed last month, will only take place if the restructuring of its property interests is voted through. | The CVA is critical to Byron’s future because a new injection of cash into the business, agreed last month, will only take place if the restructuring of its property interests is voted through. |
| Sources close to the deal, which is being handled by KPMG, said the proposals were likely to involve the closure of around 15 poorly performing restaurants and a reduction of rental payments at approximately 20 others. | Sources close to the deal, which is being handled by KPMG, said the proposals were likely to involve the closure of around 15 poorly performing restaurants and a reduction of rental payments at approximately 20 others. |
| CVA’s are a popular way for struggling companies to ditch their worst-performing outlets and trim costs, making them financially viable. | CVA’s are a popular way for struggling companies to ditch their worst-performing outlets and trim costs, making them financially viable. |
| But if Byron’s landlords reject the plan, the burger vendor could soon be out of the grill and into the fire.... | But if Byron’s landlords reject the plan, the burger vendor could soon be out of the grill and into the fire.... |
| Exclusive: Struggling burger chain Byron to launch CVA tomorrow; approval of moves to close about 15 outlets, slash rent elsewhere, crucial to wider rescue plan and company's survival. https://t.co/mLuAmaG2wd | Exclusive: Struggling burger chain Byron to launch CVA tomorrow; approval of moves to close about 15 outlets, slash rent elsewhere, crucial to wider rescue plan and company's survival. https://t.co/mLuAmaG2wd |
| Aid and development charity Oxfam has also had a good Christmas - and people in the poorest parts of the world should benefit | Aid and development charity Oxfam has also had a good Christmas - and people in the poorest parts of the world should benefit |
| My colleague Angela Monaghan explains: | My colleague Angela Monaghan explains: |
| Oxfam proved a Christmas hit with UK shoppers as vintage designer party clothing and first-edition books helped drive a sharp rise in online sales over the festive season. | Oxfam proved a Christmas hit with UK shoppers as vintage designer party clothing and first-edition books helped drive a sharp rise in online sales over the festive season. |
| The charity said Burberry, Barbour, Gucci, Whistles and Boden were among the most popular clothing brands searched for on its online shop, where sales jumped by a third in the eight weeks to 23 December. Cameras, blankets and throws were also sought-after items. | The charity said Burberry, Barbour, Gucci, Whistles and Boden were among the most popular clothing brands searched for on its online shop, where sales jumped by a third in the eight weeks to 23 December. Cameras, blankets and throws were also sought-after items. |
| Oxfam’s total sales over the period were £16.9m, up 1.2% on the same period in 2016. The charity said the extra money raised was enough to provide clean, safe water for almost 200,000 people in an emergency. | Oxfam’s total sales over the period were £16.9m, up 1.2% on the same period in 2016. The charity said the extra money raised was enough to provide clean, safe water for almost 200,000 people in an emergency. |
| More here: | More here: |
| JP Morgan’s CEO, Jamie Dimon, seems to have eaten some bitcoin humble pie. | JP Morgan’s CEO, Jamie Dimon, seems to have eaten some bitcoin humble pie. |
| Dimon has told Fox News that he ‘regretted’ labelling bitcoin as a fraud last September - a comment that enraged (or amused) cyber-currency supporters. | Dimon has told Fox News that he ‘regretted’ labelling bitcoin as a fraud last September - a comment that enraged (or amused) cyber-currency supporters. |
| But while he acknowledges that the blockchain that underpins bitcoin has real uses, he insists he still isn’t very interested in the whole issue of digital currencies. | But while he acknowledges that the blockchain that underpins bitcoin has real uses, he insists he still isn’t very interested in the whole issue of digital currencies. |
| As Dimon put it: | As Dimon put it: |
| “The blockchain is real. You can have crypto yen and dollars and stuff like that. ICO’s [initial coin offerings - or new digital coins] you have to look at individually. | “The blockchain is real. You can have crypto yen and dollars and stuff like that. ICO’s [initial coin offerings - or new digital coins] you have to look at individually. |
| The bitcoin to me was always what the governments are gonna feel about bitcoin as it gets really big, and I just have a different opinion than other people. I’m not interested that much in the subject at all.” | The bitcoin to me was always what the governments are gonna feel about bitcoin as it gets really big, and I just have a different opinion than other people. I’m not interested that much in the subject at all.” |
| Dimon also backed Donald Trump’s new tax reforms -- arguing that the president was right to almost halve US corporation tax to 21%. | Dimon also backed Donald Trump’s new tax reforms -- arguing that the president was right to almost halve US corporation tax to 21%. |
| The old 40% tax rate was a “huge disadvantage” to America, Dimon argued, driving capital and skilled labour overseas. | The old 40% tax rate was a “huge disadvantage” to America, Dimon argued, driving capital and skilled labour overseas. |
| In the long run, the cut will help firms to grow their businesses and invest in research and development, Dimon insists. | In the long run, the cut will help firms to grow their businesses and invest in research and development, Dimon insists. |
| Critics of the tax reforms, though, argue that they will mainly benefit high-earners, and end up costing middle-class Americans in the long term. | Critics of the tax reforms, though, argue that they will mainly benefit high-earners, and end up costing middle-class Americans in the long term. |
| JPMorgan Chase Chairman & CEO Jamie Dimon on tax reform: "Over time, it will be very good for America." pic.twitter.com/J6hOg1cmyu | JPMorgan Chase Chairman & CEO Jamie Dimon on tax reform: "Over time, it will be very good for America." pic.twitter.com/J6hOg1cmyu |
| And here’s a reminder of how bitcoin shrugged off Dimon’s warning: | And here’s a reminder of how bitcoin shrugged off Dimon’s warning: |
| Jamie Dimon regrets calling Bitcoin "a fraud" in September. Value has increased ~250% in the meantime. Still doesn't prove him wrong, I'm personally very skeptical.#BTC #Bitcoin #Cryptohttps://t.co/jtLhbuzWXshttps://t.co/61Nyyq5Z06 pic.twitter.com/Eiy5BTkfhU | Jamie Dimon regrets calling Bitcoin "a fraud" in September. Value has increased ~250% in the meantime. Still doesn't prove him wrong, I'm personally very skeptical.#BTC #Bitcoin #Cryptohttps://t.co/jtLhbuzWXshttps://t.co/61Nyyq5Z06 pic.twitter.com/Eiy5BTkfhU |