FTSE-100 edges higher in quiet end to big week
London
MARKETS were quietly confident around the world on Friday, after a shorter week in the US during which the Dow Jones passed a historic mark.
The FTSE-100 finished the day up a mere 4.65 points, ending at 6,367.58.
US traders were off on Thursday for Thanksgiving, and the market was set to close early in New York on Friday, meaning a lot less time to trade this week.
“Stock markets are set to finish higher today and that will round off a positive week,” said CMC Markets analyst David Madden yesterday.
“Volatility has been low as the US stock market will close early today. Yesterday, the US celebrated Thanksgiving and global markets were very quiet as a result and today isn’t much different.”
But the shortened week did not stop traders sending the Dow Jones Industrial Average above 30,000 points for the first time in its history on Tuesday.
The index had dropped below 19,000 in March this year during the worst of the Covid-19 sell-offs.
On Friday it was trading flat at about 29,885 points, having dropped back below the milestone earlier in the week. New York’s S&P 500 index was up 0.1%.
Traders seem now to be looking forward to the next administration in the White House.
After much delay, the General Services
Administration finally on Monday set in motion an official process that will let Joe Biden’s team prepare to take charge in Washington on January 20.
Markets also seemed happy with Mr Biden’s choices for his top team, especially Janet Yellen. The former Federal Reserve chair looks likely to set up shop in the Treasury as soon as she is confirmed by the Senate.
In Europe the DAX rose 0.4%, while the CAC was up 0.6%. Sterling dropped 0.4% and 0.7% respectively against the greenback and single currency to $1.3306 and €1.113.
The price of Brent crude oil rose 0.3% to $47.92 per barrel.
Pub chain JD Wetherspoon’s shares rose 1.2%, even as its chairman accused the Government’s tier system of being “a form of lockdown by stealth”.
Outsourcing giant Capita closed down 0.7% after saying it was in exclusive talks to sell its education division to Montagu, a private equity company.
After originally opening up 12% on the news that the last five months had been better than expected, Reach Plc, which owns the Daily Mirror and other newspapers, closed down 9%.
The biggest risers on the FTSE-100 were Rightmove, up 17.6p at 624p, GVC Holdings, up 27p at 1,042.5p, Smith & Nephew, up 36.5p at 1,452.5p, Fresnillo, up 23.5p at 1,112p, and Scottish Mortgage Investment Trust, up 23p at 1,109p.
The biggest fallers of the day were Severn Trent, down 62p at 2,388p, DCC, down 136p at 5,686p, IAG, down 3.8p at 160.85p, Land Securities, down 12.4p at 665.1p, and United Utilities, down 15p at 899.2p.