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FTSE rally builds as Trump and China spur bulls

Solid China trade data helps miners push FTSE 100 higher, as US president Donald Trump's tax plans continue to buoy markets.

 
FTSE rally builds as Trump and China spur bulls

The FTSE 100 resumed yesterday's late rally sparked by hopes for wide-ranging tax cuts from US president Donald Trump.

The UK blue-chip index jumped 29 points, or 0.4%, to 7,259, as investors also welcomed solid trade data from China.

Mining stocks advanced on figures showing the world's top metals consumer saw exports rise 7.9% and imports surge 16.7% in January. The top risers included:

  • Anglo American (AAL) +3.3% at £13.39;
  • Rio Tinto (RIO) +2.3% at £34.60;
  • Antofagasta (ANTO) +2.3% at 846.5p;
  • Glencore (GLEN) +1.7% at 317.6p;
  • BHP Billiton (BLT) +1.5% at £13.59.

Trump's claim yesterday that he will announce plans that were 'phenomenal in terms of tax' in the next two or three weeks pushed the S&P 500, Dow Jones and Nasdaq to all-time highs yesterday while Asian markets rallied overnight.

'As we come to the end of the third week of the Trump presidency and still with scant detail of what the new president intends to do with respect to future stimulus plans, financial markets latched onto his comments yesterday,' said Michael Hewson, chief market analyst at CMC Markets UK.

'The move to new record highs in equity markets and surge in the US dollar are symptomatic of a market craving a new stimulus. It is hard to imagine that he will be able to produce anything tangible within a two- to three-week window, however, whatever the realities investors appear happy to take him at his word.'

On the FTSE 250, Elementis (ELM) led the way, up 7.3% at 295.4p after the chemicals maker announced a $360 million (£288 million) deal to buy US personal care chemicals company SummitReheis.

Just Eat (JE) was the biggest 'mid-cap' faller, down 6.7% at 517.5p after announcing chief executive David Buttress would leave due to 'urgent family matters'.

3 comments so far. Why not have your say?

Gatekeeper75

Feb 10, 2017 at 17:40

It is a gut wrenching realisation that our investment wellbeing may be, to a greater or lesser degree, dependent on this megalomaniac and his erratic impulses. The best we can hope for is that the advisers around him prevail (however do they pass muster when you examine track records closely?).

What calibre of world leader announces that he has plans afoot that will be 'phenomenal in terms of tax'? It is the language of a 10 year old.

'Interesting" time ahead.

report this

andy mac

Feb 10, 2017 at 18:23

or a scammer

report this

matt martin

Feb 11, 2017 at 16:03

I'm operating a contrarian approach on this. Every time the S&P 500 goes a bit higher, I sell another fraction of my US funds. I have far too much in cash now, but I am absolutely convinced that "erratic" Trump has no means of delivering on his exaggerated promises. When the world realises it, things will unravel so quickly.

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