Tobacco gains push London markets higher

The London markets moved higher, helped by gains for tobacco companies following a confident update from British American Tobacco (Bat).

The FTSE 100 closed 26.64 points higher at 7,429.78 at the end of trading yesterday.

Markets across Europe were also optimistic on the back of better-than-expected US GDP figures for the third quarter and hopeful that positive trade talks between the US and China are on the horizon.

The key European markets continued progress to close higher as traders welcomed the news, despite the US still being expected to impose fresh tariffs on Chinese imports next month.

The German Dax increased by 0.38% while the French Cac edged 0.09% lower.

The Dow Jones and S&P 500 both opened higher on the back of trade optimism as well as the strong economic data.

Meanwhile, Sterling was relatively muted, edging higher in anticipation of the MRP political poll due late last night.

The value of the pound increased 0.16% versus the US dollar at 1.288 and rose 0.33% against the euro at 1.171.

The price of a barrel of Brent crude oil slid by 2.18% to 62.68 US dollars.

The biggest risers on the FTSE 100 were Hiscox, up 42p at 1,362p, BAT, up 94p at 3,080p, Prudential, up 42p at 1,385p, and Auto Trader, up 16.2p at 564.6p. The biggest fallers on the index were Rollsroyce, down 25.2p at 715.8p, Meggitt, down 14p at 643.8p, Compass Group, down 40p at 1,875.5p, and Johnson Matthey, down 55p at 2,960p.