of FTSE100 It rose 1.4% to 7,635.09 points. FTSE250 It rose 0.6% to close at 19,338.02 points.
On the currency market, the pound rose 0.06% against the dollar, trading at $1.2715, while against the euro, it fell 0.1%, trading at 1.1704 euros.
“The FTSE 100 surged today on positive economic outlook, rising 2.4% this week on rising oil prices, strong US consumer spending, the strongest growth in home sales in three years and weaker-than-expected PCE. “It's been rising recently. The index – the Fed's recommended inflation measure.” I.G. Axel Rudolph, Senior Market Analyst.
“France's CAC40 index fared even better, rising nearly 2.4%, helped by a nearly 14% rise in LVMH shares on better-than-expected sales growth and higher dividend yields.
“Although Germany's DAX 40 index remains in positive territory, it has lost its upward momentum due to an unexpected decline in German consumer confidence.”
Rudolph added that Intel's stock price has fallen about 11% and that the Nasdaq 100's “strong run” has been dampened by Intel's disappointing performance.
“In commodity markets, European natural gas futures fell to a six-month low, while oil prices stabilized on weekend profit-taking after a solid weekly rise.”
US inflation falls, UK consumer confidence rises
In economic news, as 2023 draws to a close, US consumer spending remains resilient and price pressures are easing.
The U.S. Department of Commerce said personal consumption spending rose 0.3% in December, slightly below the consensus of 0.4%.
What is noteworthy is that the rate of increase for the previous month has been revised upward by two-tenths of a point, reaching 0.4%.
At the same time, personal income rose 0.3% in December, missing the consensus estimate of a 0.4% rise.
On the inflation front, the year-on-year rate of increase in the price deflator for personal consumption expenditures remained unchanged at 2.6%.
However, at the core level, which excludes volatile food and energy prices, PCE inflation fell from 3.2% to 2.9%, slightly below the consensus of 3.0%.
At home, it was announced that consumer confidence in the UK continued to improve in January, reaching its highest level in two years. GfK.
The Consumer Confidence Index rose 3 points in January to -19, with individuals expressing optimism about their financial situation.
According to key indicators, the Personal Finance Index rose two points to -12 over the past year, representing a significant improvement of 19 points compared to January last year.
In addition, the overall economic situation index improved by 30 points compared to the previous year, increasing by 3 points to -41.
Expectations for the general economic situation over the next 12 months also showed growth, rising 4 points to -21, an improvement of 33 points year-on-year.
“Consumer confidence has started the year well with all indicators up, the highest since January 2022,” said Joe Staton, Director of Customer Strategy. GfK.
“Importantly, our view of our personal finances next year rose by two points and now stands at zero.
“We are pleased to see the end of 24 consecutive months of negative scores on this index, and this significant change is an indication of how the nation's households feel about their income and spending. It is the single best indicator.”
Mr Staton added that despite the cost of living crisis still hitting many households across the UK, consumers appeared encouraged by positive news about falling inflation, which is currently at 4%.
On the continent, Germany faced serious economic concerns after a prominent survey found that consumer confidence had unexpectedly fallen as inflation thwarted major purchases.
The Consumer Confidence Index for February was -29.7, significantly lower than January's revised figure of -25.4, and significantly lower than the consensus estimate of -24.5.
Tesco and Sainsbury's under pressure as several shares rise on readings
On the London stock market, Kuroda International The stock rose 5.2% as Lonza and Sartorius' stock prices rose significantly following strong earnings reports.
giant of distillation diageo Shares rose 5.13% after French spirits maker Rémy Cointreau reported positive third-quarter results.
burberry group It rose 4.93%, benefiting from strong performance from Louis Vuitton and Christian Dior owner LVMH.
Over 50s travel and insurance specialist Saga The company soared 6.27% after announcing it was considering various options for its cruise business, including the possibility of a partnership agreement.
The move is consistent with Saga's strategy to adopt a capital-light business model to drive growth, increase shareholder value and reduce debt.
vodafone group The company also rose, rising 3.89%, despite the UK competition regulator launching a formal investigation into its planned £15bn merger with Three UK.
As a disadvantage, W.H. Smith fell by 0.65%, despite group total revenue increasing by 8% in the 20 weeks to 20 January, highlighting the strong performance of the travel business.
fashion brand Super Dry The company fell 2.61% after reporting a significant decline in group sales for the first half of the year, as well as a pessimistic outlook for the full year due to continued difficult trading conditions.
both J Sainsbury and tesco under pressure, falling 1.92% and 1.72% respectively.
The driving force behind the decline was JP Morgan Cazenovehas decided to cut its target price for the grocery retailer, expressing caution about the UK grocery sector.
Outsourced company selco group Shares fell 0.57% after reports that American Industrial Partners (AIP) has contacted them about a possible bid.
Talks continued, but it remained unclear whether AIP had formally proposed the acquisition.
Report by Josh White of Sharecast.com.
market mover
FTSE100 (UK X) 7,635.09 1.40%
FTSE250(MCX) 19,338.02 0.60%
Techmark (TASX) 4,387.90 0.78%
FTSE 100 – Riser
Croda International (CRDA) 4,758.00p 5.29%
Diageo (DGE) 2,849.00 pence 5.13%
Burberry Group (BRBY) 1,341.50p 4.93%
Vodafone Group (VOD) 70.76p 3.88%
St. James Place (STJ) 670.80p 3.77%
Spirax Sarco Engineering (SPX) 9,970.00 pence 3.62%
Anglo American (AAL) 1,887.00 pence 3.45%
United Utilities Group (UU.) 1,057.50p 3.07%
Rentokil Initial (RTO) 404.00p 2.93%
Prudential (PRU) 858.20p 2.88%
FTSE 100 – Falls
Centrica (CNA) 137.65p -4.58%
SSE (SSE) 1,698.00 pence -2.36%
Sainsbury (J) (SBRY) 276.00p -1.92%
Tesco (TSCO) 293.50p -1.77%
Marks & Spencer Group (MKS) 255.90p -1.73%
BAE Systems (BA.) 1,168.00p -1.18%
International Consolidated Airlines Group SA (CDI) (IAG) 154.05p -0.58%
Endeavor Mining (EDV) 1,426.00 pence -0.49%
Rolls-Royce Holdings (RR.) 305.40p -0.36%
CRH (CDI) (CRH) 5,506.00p -0.25%
FTSE 250 – Riser
Wizz Air Holdings (WIZZ) 2,050.00 pence 5.32%
Victrex plc (VCT) 1,392.00p 4.66%
Dr. Martens (DOCS) 87.60p 4.27%
Essentra (ESNT) 173.00p 4.09%
Spire Healthcare Group (SPI) 238.50p 3.92%
Games Workshop Group (GAW) 9,935.00p 3.33%
OSB Group (OSB) 445.00p 3.30%
Body coat (boy) 660.00p 3.12%
Johnson Matthey (JMAT) 1,661.00 pence 2.98%
Helios Towers (HTWS) 84.50p 2.92%
FTSE 250 – Falls
Tallow oil (TLW) 32.42p -6.03%
International Distribution Service (IDS) 278.00p -3.00%
Indivia (INDV) 1,368.00 pence -2.49%
Drax Group (DRX) 496.30p -2.46%
Trustpilot Group (TRST) 177.30p -2.17%
Buckaball Group (BAKK) 95.60p -2.05%
Allianz Technology Trust (ATT) 321.00p -1.98%
Octopus Renewable Infrastructure Trust (ORIT) 86.80p -1.81%
WAG Payment Solution (WPS) 89.60p -1.75%
PPHE Hotel Group Limited (PPH) 1,215.00 pence -1.62%