Markets rose as sales figures increased in London clothing sellers

European markets bounced back from a rough start to the week as investors looked to be heading lower on Monday.

In London, the rise was led by fashion retailer Next and JD Sports as well as mining and gambling companies.

It helped the FTSE 100 index of major companies in London rise by 46.12 points, or 0.6%.

This came as retail sales figures showed a 2.1% increase in December compared to the same month last year, also an increase of 4.6% compared to 2019.

“However, the British Retail Consortium (BRC) has warned that consumer spending could be hit thanks to higher inflation and higher energy bills,” said Oliver Mallis, Spreadex expert.

He added: “The World Bank said today that it expects the global economy to grow by only 4.1% this year, down from 5.5% last year, due to the Omicron variable.

“But even so, many UK economists only expect December and January to be a flat, worst-case scenario, given how well the UK has handled the virus compared to most other countries, particularly across Europe.”

In New York, the Dow Jones rose 0.1% after the UK markets closed, while the S&P 500 rose 0.5%.

In France, the Cac 40 closed 1% higher, while the Dax in Frankfurt remained fairly flat.

“European markets had a much better session today, although the bias was more defensive in nature with healthcare stocks outperforming, and today’s resilience continues to contrast with the performance of stocks in the US, where the air looks a little thinner,” said Michael Hewson, analyst at CMC Markets. .

He added: “Dechra Pharmaceuticals emerged near the top of the FTSE 100 index, after announcing that it had secured the global rights to Verdinexor, a drug used to treat canine lymphoma.

“Today’s rally in Dechra shares also helps reverse five days of sharp declines that saw shares drop more than 15% in a week.”

In the currency markets, the British pound is down 0.1% against the euro and will buy 1.1991 euros by the end of the day. Against the dollar, it rose 0.1 percent to 1.3619.

In company news, Darktrace reached close to the top of the smaller FTSE 250 index after revealing higher earnings and sales forecasts for the fiscal year.

The company said it has seen customer numbers grow by nearly 40%. The company pulled out of the FTSE 100 in December after its share price halved from its September high.

On Tuesday, its shares rose 6.9%.

Elsewhere, Games Workshop shares tumbled 10.9% when it said earnings have slumped in the past six months.

The company said sales have grown, but its costs are rising due to increased freight, warehouse and logistics rates. It also received £15m in post-Brexit VAT receipts.

Earnings before tax fell 3.7% in the six months to the end of November.

The biggest rises on the FTSE 100 were Scottish Mortgage Investment Trust, up 57p to 1,196p, Next, up 346p to 8,000p, Dechra Pharmaceuticals, 146p to 4446p, JD Sports, 6p to 218.8p, and Fresnillo, up 20.8 p. to 336.6 p.

The biggest losers in the FTSE 100 were Reckitt, down 93p to 6228p, United Utilities, down 1p to 116.1p, Diageo, down 44p to 3805p, Croda International, down 92p to 8942p, and SSE, down 16p to 1622.5p.

Leave a Comment