Closing post
And finally…. Britain’s stock market has ended the day at a new high.
The FTSE 100 share index has posted a new closing high of 9578.5 points, after new US sanctions on Russia drove up the value of UK energy companies. This takes its gains so far this year to over 17%
Earlier in the day the ‘Footsie’ hit a new intraday high to 9594.82 points.
BP (+3.7%) and Shell (+2.9%) were among the risers, after Donald Trump announced new sanctions on Russia’s two biggest oil producers, Rosneft and Lukoil.
In another blow to Russia, European Union countries agreed a new package of sanctions against Russia for its war against Ukraine that includes a ban on Russian liquefied natural gas imports.
Following Trump’s move, there were reports that Chinese state oil majors have suspended purchases of seaborne Russian oil.
Crude oil rallied too, with Brent crude up 5.2% at $65.76 per barrel this afternoon, while stocks in Moscow took a tumble.
Pest control firm Rentokil (+8.3%) ended the day as the top riser, after cheering the City by reporting improved trading at its US pest control division.
The London Stock Exchange Group (+7.1%) was also in demand, after reporting strong growth, an investment by a consortium of banks into its Post Trade Services division and a new £1bn share buy-back programme.
The mood in the City was not shaken by the news that UK manufacturing orders have fallen at their fastest rates since July 2020, with factory bosses expecting further weakness.
Bank of England policymaker Swati Dhingra warned that Brexit has demonstrated the “corrosive effect of policy uncertainty on trade, productivity, and business investment”.
The estate agency Foxtons has warned of weak sales for the rest of the year as economic uncertainty and potential property tax changes in next month’s budget deter buyers, sending its shares sharply lower.
The London-focused company, known for its green-and-yellow Mini cars, said buyers had been holding off ahead of the budget on 26 November, which is a month later than usual.
Slower-than-expected interest rate cuts from the Bank of England are also having an impact by affecting the cost of mortgages, it said. As a result, “sales are likely to remain subdued for the rest of the year”, with a risk that revenues in the fourth quarter could fall below management’s expectations.
