27th Dec 2013 10:50
LONDON (Alliance News) - UK equities are trading higher Friday as the so-called "Santa Rally" continues to push stocks higher as December draws to a close. Alongside this, strong data releases from the US and Japan have lifted global stocks.
By mid-morning, the FTSE 100 is up 0.5% at 6,731.5, the FTSE 250 is up 0.1% at 15,805.62, and the AIM All-Share index is up 0.6% at 841.3.
As 2014 draws ever-closer, it is looking increasingly likely that the UK's headline index will close December higher than it started the month for the eleventh consecutive year, following an initial down trend earlier in the month. The FTSE 100 is now approximately 81 points higher than its opening price at the start of the month.
Data released from the US Thursday showed that weekly jobless claims dropped more-than-expected for the week ended December 21. Jobless claims fell to 338,000 from 380,000, ahead of expectations of a drop to 345,000 from the 379,000 originally reported, adding to recent examples that the economy is strengthening.
A raft of Japanese data released overnight also was mostly positive.
The Japanese manufacturing sector grew at the sharpest pace in nearly seven-and-half years in December, supported by strong growth in new business and production, data from a survey conducted by Markit Economics and the Japan Materials Management Association revealed. The seasonally adjusted manufacturing purchasing managers' index rose to 55.2 in December from 55.1 in November, marking the biggest improvement in operating conditions since July 2006.
Consumer prices in Japan added 1.5% on year in November, the Ministry of Internal Affairs and Communications said - in line with expectations and up from 1.1% in October. Retail sales climbed 4.0% on year in November, coming in at JPY11.580 trillion. That beat forecasts for an increase of 2.9% following the 2.4% gain in October.
It was not all good news, however. The unemployment rate in Japan came in at a seasonally adjusted 4.0% in November, the Ministry of Internal Affairs and Communications said on Friday - unchanged from the previous month but missing forecasts for 3.9%.
Meanwhile, in France, jobless claims rose in November, following a surprise fall in the previous month. The number of Class A registered job seekers totalled 3.293 million in November, up 0.5% from the end of October, data from the Labor Ministry showed late Thursday.
Despite this, by mid-morning, the French CAC 40 is up 1%. Elsewhere in Europe, the German DAX 30 is up 0.8%.
Back in the UK, the general financial sector is down 0.6%, leading the fallers in the London market. FTSE 250-listed International Personal Finance PLC is driving the sector lower, down 23%. The company announced Tuesday that it has been fined GBP2.4 million by the Polish Office of Consumer Protection and Competition after it failed to correctly calculate the annual percentage rate on its products.
"While the fine itself is not material," Shore Capital said, "the proposed inclusion of the preparatory fee and home collection service charge in the APR calculation has potentially much larger implications."
At the other end of the spectrum, FTSE 250-listed Evraz is amongst the biggest winners. The group said it will sell iron ore assets to LLC Ruda Khakasii for roughly USD306,000. Ruda Khakasii will purchase some of Evraz's assets in Russia, including the Abakan and Teya iron ore mines and the Mundybash beneficiation plant. Ruda Khakasii also will purchase Evraz's subsidiary utilities companies, Abaza-Energo and Teyskie Energoseti.
In the forex market, the dollar has weakened against its major European counterparts Friday. By mid-morning, the pound trades at USD1.6495, having hit USD1.6506 in early trading, its highest level since August 2011. The euro trades at USD1.3806, while the Swiss franc is at USD1.1278.
By James Kemp; [email protected]; @jamespkemp
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