Chinese exports push shares to year high

LONDON

THE London market soared to a new high for 2016 as strong economic data from China overshadowed heavy falls from supermarket giant Tesco.

The FTSE 100 Index was up 120.5 points to 6362.89, as global markets raced ahead after Chinese exports rose 11 per cent, brightening the outlook for global trade.

Across Europe, Germany’s Dax lifted 2.7 per cent, while the Cac 40 in France rose by 2.9 per cent.

Banks and commodities stocks led the charge in the UK, continuing gains from the previous session, with Anglo American up 11 per cent and Standard

Chartered rising more than 10 per cent.

The oil giants also remained strong despite Brent crude slipping one per cent to 44.23 US dollars a barrel. Royal Dutch Shell and BP both climbed 2.4 per cent

The pound was down 0.4 per cent against the dollar at 1.42, as the US currency remained strong despite an economic update showing American retail sales fell last month. But sterling was up 0.5 per cent against the euro at 1.25.

Supermarket Tesco was among a small selection of fallers after its caution over profit growth for the year ahead took the shine off its return to the black.

Britain’s biggest grocer slipped 7.8 per cent as it tempered good news on its turnaround plan with a warning that its investment in price cuts would slow its profit improvement, “particularly in the first half”.

Tesco dropped 15.3p to 181p despite revealing “significant progress” in its turnaround by guiding the business back to profit and unveiling its first UK quarterly sales rise for more than three years.

The supermarket giant posted bottom-line pre-tax profits of £162 million for the year to February 27 against losses of £6.3 billion the previous year. It also reported a 0.9 per cent rise in UK like-forlike sales in its fourth quarter, which marked its first full quarter of growth since 2013, as the group’s recovery under boss Dave Lewis gathers pace.

The group’s share falls sparked declines for rival Morrisons, down 4p to 197.2p, but Sainsbury’s clawed back from early session losses to stand 0.2p higher at 286p.

Elsewhere, Mr Kipling cakes firm Premier Foods also plummeted as its takeover tussle with McCormick & Company came to an abrupt halt when the American spice giant pulled out of its pursuit.

McCormick said it was “not able to propose a price that would be recommended by the board of Premier Foods” after completing due diligence on the company.

Shares in Premier Foods dropped more than 26 per cent or 15.3p to 41.8p.

WH Smith was also in the red in the FTSE 250 Index despite posting an 11 per cent rise in half-year pre-tax profits to £80 million in the six months to February 29.

It said high street sales were boosted by the craze for colouringin and activity books for grown-ups.

But the stock fell more than 1 per cent, down 25p to 1780p, as investors looked to take profits after shares have surged by almost 25 per cent in the past year.

Halfords was one of the biggest risers in the second tier as it posted a bounceback in bike sales, up 1.9 per cent in the 11 weeks to April, and said its car maintenance arm would help shore up profits.

Shares lifted more than 9 per cent or 37.3p to 423.3p.

NEW YORK

WALL Street rallied for a second successive day, led by gains in beaten-down financial shares after

JPMorgan’s quarterly results. The major indexes each ended up at least 1 per cent. The S&P 500 finished at its highest level in more than four months, while the Nasdaq registered its highest close of 2016 and the Dow industrials touched a more than five-month high.

JPMorgan, the No. 1 U.S. bank by assets, reported a quarterly profit that topped low market expectations. Its shares surged 4.2 per cent and gave the biggest boost to the S&P 500.

Financials, the worst performing sector this year, were the leading group yesterday, climbing 2.2 per cent. Other big bank earnings are due this week, including reports from Bank of America and

Wells Fargo later today. The Dow Jones industrial average rose 187.03 points, or 1.06 per cent, to 17,908.28, the S&P 500 gained 20.7 points, or 1 per cent, to 2,082.42 and the Nasdaq Composite added 75.33 points, or 1.55 per cent, to 4,947.42.

China’s exports in March returned to growth for the first time in nine months, further signs of stabilisation in the world’s second-largest economy.

The Dow Jones transportation average, seen by many as an indicator of economic health, gained 2.6 per cent. CSX rose 4.2 per cent to $26.04 per share, a day after the No. 3 US railroad posted a lower net profit in the first quarter but met market expectations.

About 7.6 billion shares changed hands on exchanges, above the 7bn average for the past 20 days.