FTSE pushes higher after tobacco spark

The FTSE 100 moved higher, helped by gains for tobacco companies following a confident update from industry heavyweight British American Tobacco (BAT).

London’s blue-chip index closed up 26.64 points at 7,429.78, with better-than-expected GDP figures from the US and hopes of positive trade talks between the US and China also driving up sentiment.

David Madden, market analyst at CMC markets UK, said: “Stocks are in positive territory heading into the close as traders are hopeful the Us-china trade talks will bring about an agreement in the next few weeks. Traders are cautious not to get ahead of themselves as nothing is a done deal until everything is signed.”

In company news, BAT was one of the day’s big winners, after it said profit and revenue growth was at the upper end of forecasts. The company said it expects to capitalise on stronger vaping rules after a series of deaths linked to electronic cigarettes in the US. Shares in the company closed 94p higher at 3,080p.

On The Beach shares climbed after the package holiday firm insisted the demise of Thomas Cook will boost trading, despite seeing annual profits plunge after taking a hit from the firm’s collapse. Shares jumped by 11.4p to 445.4p.

Meanwhile, the boss of Lloyds Bank is to give up half his annual pension allowance after staff and shareholders expressed outrage at the gap between his pension and those of other Lloyds employees. The bank is consulting with shareholders on slashing Antonio Horta-osorio’s pension by almost £230,000, to bring it in line with others. Shares rose 0.48p to 61.7p.