London market ahead after Trump speech

The London market eked out marginal gains yesterday as blue-chip firms with hefty American operations enjoyed a lift after US President Donald Trump revealed a plan for sweeping tax reforms.

The FTSE 100 Index closed up 9.31 points to 7322.82, with Irish building materials firm CRH and the equipment rentals business Ashtead Group among the biggest risers as traders priced in the tax overhaul.

The major revamp of the US tax code will deeply reduce levies for corporations, with a top tax rate cut from 35% to 20%, sending CRH 79p higher at 2,784p and Ashtead up 42p to 1,803p.

David Madden, market analyst at CMC Markets, said: “Both firms have large operations in the US, and if the American economy is going to potentially experience higher economic growth on the back of the probusiness tax reforms, the firms could rake in higher profits.”

Across Europe, Germany’s Dax was up 0.4% and the Cac 40 in France was 0.2% higher.

On the currency markets, the pound was 0.3% higher versus the US dollar at 1.343 amid profit taking on the greenback, while sterling was flat against the euro at 1.140.

The price of Brent crude was trailing by 0.7% at 57.22 US dollars a barrel amid concerns over tensions in the Middle East following a vote backing independence in the Kurdistan region of northern Iraq.

In UK stocks, tobacco giant Imperial Brands fell by more than 4% after it revealed that talks were under way to thrash out a rescue deal for Palmer & Harvey to ensure the troubled wholesaler has a “sustainable future”.