London shares prices closed green taking their cue from solid US and Asian sessions, as investors sifted through a raft of corporate news.

The FTSE 100 ended the session up 1.01% at 7,643.42, and the FTSE 250 was 1.82% firmer at 22,184.01.

Sterling, meanwhile, was weaker, last trading down 0.02% on the dollar at $1.3540, and losing 0.13% against the euro to change hands at €1.1848.

“European markets have seen another strong session today, with the FTSE 100 setting a new two-year high, while the FTSE 250 has also seen strong gains due to some outperformance in companies who are most exposed to the ebb and flow of the UK economy, and the announcement of a possible easing of Covid-19 restrictions in England, at the end of this month,” said CMC Markets chief market analyst Michael Hewson.

“The prime minister’s announcement that Covid isolation in England rules could end at the end of this month has given a leg up to the likes of Whitbread, Cineworld and Kingfisher, while IAG is also higher, as reports circulate it could be forced by Brussels to spin off its UK operation British Airways, due to EU ownership rules.”

On the economic front, research published earlier showed household confidence in their financial outlook slumping to its lowest level in more than eight years.

According to polling firm YouGov and consultancy Centre for Business and Economic Research, households’ expectations for their financial situation in 12-months’ time fell 4.5 points in January to 79.1, the lowest since October 2013.

The wider measure of consumer confidence also fell, to 109.0 from 110.0, the weakest since March 2021.

“This month’s drop in the consumer confidence index highlights the impact of the rising cost of living on household sentiment,” said Sam Miley, senior economist at Cebr.

“Consumers’ assessment of their finances over the coming year provides for a particularly stark reading.

“Rising inflation and the planned uplift to National Insurance contributions are just two likely factors behind this weaker outlook.”

Housing rent, meanwhile, hit a 13-year high according to fresh industry research, further compounding the growing cost of living crisis.

According to the quarterly Rental Market Report from property platform Zoopla, rents rose 8.3% in the fourth quarter of 2021, to £969 per month, £62 more per month than at the start of the pandemic and a 13-year high.

Overall, average rents were now up nearly 12% over the last five years, after some areas such as city centres saw demand slide during the pandemic.

The average rent now accounted for 37% of gross income for a single earner, compared to a pandemic dip of 34% during most of 2021, and the 10-year average of 36%.

“Rents have risen sharply in recent months amid a backdrop of rising living costs,” said Gráinne Gilmore, head of research at Zoopla.

“But it is important to point out that in terms of rental affordability, in most markets rents are still close to the 10-year average.

“As demand continues to outpace supply, there will be further upwards pressure on rents but affordability considerations will act as a brake on large rises.”

On the continent, official data showed German exports rising unexpectedly at the end of 2021.

According to Destatis, exports rose 0.9% in December on a calendar and seasonally-adjusted basis compared to November, when they increased by 1.8%, and by 15.6% year-on-year.

For the year as a whole, exports rose 14.0% to €1,375.5bn.

Most economists had been expecting exports to decline by around 0.2% in December.

“Germany’s trade surplus is now almost gone, indicating that the eurozone trade deficit widened further at the end of 2021,” said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics.

“These data look dramatic, and in some sense, they are.

“The euro area’s largest economy has suffered a significant hit to its otherwise unshakeable trade surplus. Exports, however, are doing fine.”

Back on the London bourse, paper and packaging companies were in the green after corrugated packaging group Smurfit Kappa hiked its dividend by 10% and reported a jump in full-year revenue and earnings amid solid demand.

Smurfit closed up 1.95%, while peer Mondi added 3.5% and DS Smith was 3.26% firmer.

“Smurfit Kappa helped lift its industry peers with guidance for rising prices that should benefit the entire space amid strong demand,” noted Russ Mould, investment director at AJ Bell.

Travel and leisure stocks rallied, with British Airways owner IAG up 4.67%, travel operator TUI gaining 9.7%, Cineworld ahead 7.41%, and low-cost carrier Wizz Air ascending 4.79%.

Elsewhere, insurer Admiral Group jumped 4.03% after an upgrade to ‘buy’ at HSBC.

Housebuilder Barratt Developments gained 0.96% after it reported a slight rise in interim profits and lifted its dividend, despite an 11% fall in completions and weaker revenue.

Peers Taylor Wimpey, Persimmon and Bellway also gained, by 1.75%, 1.48% and 2.82%, respectively.

Imperial Leather maker PZ Cussons was 4.54% higher even as it reported a decline in interim profit and revenue, noting a drop in demand for hygiene products since the height of the pandemic.

Dunelm Group rose 2.45% after the retailer posted record first-half profit and declared a special dividend, as homeware and furniture sales continued to outperform the market, but warned that cost pressures could see some price rises.

Discoverie Group was up 3.67% after saying it was on track to deliver full-year underlying earnings for continuing operations ahead of the board’s previous expectations despite ongoing supply chain headwinds.

Micro Focus surged 11.26%, having tumbled on Tuesday after the software group said it was on track to deliver its 2023 goals as it posted a narrowing of its full-year losses but a drop in revenues.

On the downside, GlaxoSmithKline fell 1.4% even after the pharmaceuticals giant said Covid-related sales hit £1.4bn last year, while reporting better-than-expected fourth-quarter earnings.

Chemring was down 2.9% after a downgrade to ‘equalweight’ from ‘overweight’ at Barclays, and a price target cut to 300p from 380p.

Tate & Lyle was 2.27% weaker after the food and beverage ingredients supplier said Dawn Allen had been appointed to the position of chief financial officer.

Market Movers

FTSE 100 (UKX) 7,643.42 1.01%
FTSE 250 (MCX) 22,184.01 1.82%
techMARK (TASX) 4,447.11 1.40%

FTSE 100 – Risers

Ocado Group (OCDO) 1,300.00p 6.12%
International Consolidated Airlines Group SA (CDI) (IAG) 174.96p 4.67%
ITV (ITV) 119.75p 4.31%
Admiral Group (ADM) 3,067.00p 4.03%
Antofagasta (ANTO) 1,290.00p 3.86%
Ashtead Group (AHT) 5,152.00p 3.76%
Scottish Mortgage Inv Trust (SMT) 1,108.50p 3.68%
Mondi (MNDI) 1,921.50p 3.50%
Entain (ENT) 1,648.00p 3.32%
Pershing Square Holdings Ltd NPV (PSH) 2,800.00p 3.32%

FTSE 100 – Fallers

Evraz (EVR) 445.00p -3.49%
Airtel Africa (AAF) 139.10p -1.83%
Sainsbury (J) (SBRY) 277.40p -1.53%
Standard Chartered (STAN) 563.00p -1.47%
GlaxoSmithKline (GSK) 1,620.80p -1.40%
Unilever (ULVR) 3,828.50p -1.24%
Prudential (PRU) 1,240.00p -1.00%
HSBC Holdings (HSBA) 560.80p -0.48%
Rentokil Initial (RTO) 511.40p -0.04%
Rightmove (RMV) 640.00p -0.03%

FTSE 250 – Risers

Micro Focus International (MCRO) 452.30p 11.26%
TUI AG Reg Shs (DI) (TUI) 279.00p 9.70%
Aston Martin Lagonda Global Holdings (AML) 1,197.50p 7.45%
Cineworld Group (CINE) 39.27p 7.41%
Virgin Money UK (VMUK) 217.20p 6.63%
Darktrace (DARK) 397.80p 5.91%
888 Holdings (888) 269.60p 5.81%
National Express Group (NEX) 280.60p 5.81%
Trustpilot Group (TRST) 169.80p 5.36%
Tyman (TYMN) 372.50p 5.07%

FTSE 250 – Fallers

Hipgnosis Songs Fund Limited C Shs NPV (SONC) 112.50p -100.00%
Chemring Group (CHG) 268.00p -2.90%
Tate & Lyle (TATE) 698.60p -2.27%
Just Group (JUST) 88.00p -1.35%
Greencoat UK Wind (UKW) 143.20p -1.11%
Helios Towers (HTWS) 151.20p -1.05%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 514.00p -0.96%
Hochschild Mining (HOC) 102.10p -0.87%
Chrysalis Investments Limited NPV (CHRY) 180.50p -0.82%
Hiscox Limited (DI) (HSX) 967.00p -0.74%

(SOURCE)