Hopes of US tax reforms buoy markets

Market report Perry Gourley

The prospect of US tax reforms has buoyed global stock markets but knocked the dollar, sending UK shares and sterling higher.

The FTSE 100 ended the day up by 46.44 points at 7,537.01, trending higher alongside its US and European peers including the French Cac 40 and German Dax.

David Madden, a market analyst at CMC Markets UK, said: “There is talk US lawmakers will pass the pro-business tax cuts that president Trump proposed this week, and that has been fuelling global investor sentiment. The prospect of tax cuts being approved ahead of Christmas is propping up global stock markets.”

Babcock International shares were among the best performers on the blue-chip index, closing higher by 22p at 706.5p.

The engineering services group has been awarded a ten-year contract – that will be worth up to £95 million over the first three years – to supply the Sellafield nuclear site with specialist handling and containment systems.

At the other end of the spectrum, Easyjet shares were at the bottom of the FTSE 100, trading lower by 40p at 1,377p.

That is despite the airline confirming the acquisition of part of bankrupt German carrier Air Berlin in a deal worth £35.2m, just a week after the European Commission gave the deal the all-clear.

The transaction will see the budget airline take control of Air Berlin’s operations at the capital’s Tegel Airport, with Easyjet leasing 25 of its aircraft, while taking over landing slots and offering employment to the defunct carrier’s flying crew. The biotechnology company has received approval to expand a clinical trial for patients with prostate and other cancers. The payment network firm said that annual revenues would be below expectations due to factors including contract delays.