Job surge and oil pushes FTSE 100 to record high

The surging UK jobs market created another record last night as the FTSE 100 closed at a record high.

The index ended the day up 53.77 points at 7787.97, nearly ten points clear of its previous closing record of 7778 on January 12.

Stocks were also bolstered by the rise in the price of a barrel of oil, as it topped $80 for the first time in nearly four years, amid the prospect of a cut in supply from sanctions-hit Iran.

The Bank of england’s decision to postpone an interest rate rise because of falling inflation and a dip in unemployment has also helped the markets’ strong showing, experts said.

Rising oil prices lifted Shell 2pc, or 53p, to 2730p, alongside rival

BP, which closed up 1.4pc, or 8.1p, at 584p.

Bookmakers also had a strong day despite the crackdown on ‘crack-cocaine’ betting machines. Shares were up even as ministers backed slashing the maximum stake on lucrative fixed- odds betting terminals from £100 to £2. The industry battled against the change, and yesterday continued to warn of shop closures, profit cuts and damage to sports such as horse racing.

But investors appeared to think those worries were overblown, or had already priced them in.

GVC Holdings , the owner of Ladbrokes Coral, said it will face a £160m hit from the decision and will now identify stores to shut. Shares rose 5pc, or 45.5p, to 961p.

Paddy Power Betfair warned of a £46m revenue hit but said there would be no material impact on its retail strategy. Shares rose 1.9pc, or 155p, to 8405p.

And William Hill claimed the decision will mean 900 stores become loss-making and at risk of closure. But shares rose 4.2pc, or 13.3p, to 330.8p. The gains capped a strong week for the industry, with shares rocketing on Monday after the US freed states to legalise sports betting. Financial services firm Just

Group also rose as it announced a 43pc hike in quarterly retirement income sales to £454m.

Business was boosted by its management of company pension schemes. Sales of bulk annuities – insuring company pension schemes – rose 99pc to £249m.

The market is booming as many defined benefit schemes are in deficit and companies want to pass on the risk.

Analysts at Numis said the trading statement was ‘exceptionally strong’ and noted Just Group has limited competition. Shares rose 7.1pc, or 10p, to 150.4p. Upmarket tonic maker Fever

Tree lost some of its fizz, sinking nearly 6pc after it said it was trading in line with expectations.

That wasn’t good enough for some investors in a firm known for staggering growth. Shares fell 5.7pc, or 168p, to 2757p.

It wasn’t all gloom, however: analysts at Shore Capital said AIM-listed Fever-Tree still has significant opportunity, with growth expected from the US.

Investec reiterated its ‘buy’ recommendation on the stock, noting efforts to roll out lighter versions of products due to the sugar tax in the UK.

Also on AIM, Igas, one of the country’s largest onshore oil and gas producers, had an early bump after a statement by Business Secretary Greg Clark backing fracking and easing planning restrictions.

Igas has licences to explore for shale gas and is among several firms hoping to start fracking in the UK.

Government backing failed to excite investors, however: Igas rose in early trading but had fallen by the end of the day.

The shares closed down 1.2pc, or 1p, at 85p.