Footsie floats on promise of Us-china deal

Market report Hannah Burley

London’s top flight climbed higher on the back of renewed hopes among investors that Us-china trade talks will result in a positive outcome.

The FTSE 100 hit a four month high, following US peers and closing up 57.7 points at 7,190.84.

“Stocks are higher this afternoon as traders are hopeful about the Us-china trade talks that are taking place. US treasury secretary, Steve Mnuchin, said the talks were going well,” said David Madden, analyst at CMC Markets.

The pound held firm following January inflation data showing prices fell below the Bank of England’s target for the first time in two years thanks to the new cap on energy prices.

Figures from the Office for National Statistics (ONS) showed the Consumer Prices Index (CPI) fell to 1.8 per cent last month, the largest drop since 2016, from 2.1 per cent in December.

Sterling was trading 0.2 per cent lower against the dollar at the London market close at $1.285. Versus the euro, the pound rose 0.1 per cent to reach €1.140.

In stocks, Premier Inn owner Whitbread rose towards the top of the FTSE 100 after unveiling plans to return another £2 billion to investors following its £3.9bn sale of Costa Coffee. Shares were up by 138p at 4,901p.

Dunelm’s stock was also riding higher after the retailer reported a 24 per cent increase in pre-tax profit and like-for-like revenue growth of 6.9 per cent for the six months to 29 December. Shares rose 22p higher to 739p.

Paddy Power Betfair announced it will challenge a €55m (£49m) legacy tax bill the betting agent has been slapped with in Germany and Greece. Shares ended the day 80p up at 6,410p.