The stock markets in London, Europe and the US rallied on Monday morning amid optimism that Washington is getting closer to an agreement to raise the US Debt Ceiling and avoid default.
The FTSE 250 also gained 101.41 points or 0.5 percent to 19,316.77, following Wall Street and Asia’s gains. The DAX of Germany and the CAC40 of Paris both gained nearly one percent.
ConvaTec group was among the London risers, adding 9p or 4.1 percent to 224p following the company’s revised revenue forecast for the full year. After being under intense selling pressure yesterday the retailers JD Sports, and credit data company Experian both improved by 7 1/2p or 4.5 percent to 1701/2p and 65p or 2.4 percent to PS28. Investors jumped in to take advantage of the recent weakness in the share prices.
Scottish Mortgage Investment Trust is one of the most important vehicles for UK investors to participate in the US tech boom. After disappointing results yesterday, the trust’s share price rose by 13p or 2.1%, reaching 635p.
Informat climbed 14 1/2p or 2 percent to 721 1/4p following the announcement by the British event organiser that it would purchase the Business-to-Business events, data, and media group Winsight, for $380m, as part of its efforts to improve its position on the food-service specialist market.
Only a few blue-chips were trading in red as the market approached midday. Among them wasBT, which dropped 10 1/2p, or 7.1 per cent, to an eight-week low of 137 3/4p after the telemcoms company reported weaker-than-expected cashflows, and the luxury goods company Burberry lost 163p, or 6.5 per cent, to PS23.57 as continued weakness in the US overshadowed stronger-than-expected fourth-quarter sales, which were driven by a rebound in China.
Geely’s doubling of its stake in Aston Martin Lagonda pushed the luxury carmaker up to the top of mid-cap index. The shares are on course to reach their highest level for the past two months after a 34p or 14.5% increase to 264 3/4p. Genuit (formerly Polypipe), the pipe manufacturer, was not far behind, rising 28 1/2p or 9.6 percent to 326 1/2p. It said it expects operating profits to be higher than consensus estimates this year.
future shares, on the other hand, dropped to levels that had not been seen for more than three-years after the publisher stated that market conditions were challenging and impacted profits in the first six months. It also predicted a continuation of the weak trends in the second six months. The publisher’s full-year results were expected to be below City expectations. The shares dropped 154 1/2p or 14.8% to 8911/2p.