31st Dec 2013 10:29
LONDON (Alliance News) - UK stocks are trading higher Tuesday ahead of the New Year's Day Holiday amid low volumes in the final trading session of 2013.
By mid-morning, the FTSE 100 is up 0.3% at 6,753.99, the FTSE 250 is up 0.1% at 15,923.7, and the AIM All-Share index is marginally higher at 848.43.
The increase adds to what has been a strong year for the FTSE 100, currently approximately 14.5% higher than its starting point in 2013. The gain also adds to the likelihood that the UK's primary index will end December higher than it started the month for the eleventh consecutive year.
With the index currently 103.42 points up for the month and the London Stock Exchange closing at 1230 GMT on New Year's Eve, it is now extremely unlikely that the index will not keep with tradition.
There has not been any major macro-economic data releases from the UK or Europe Tuesday.
In China, however, the central bank has vowed to maintain appropriate liquidity and continue a prudent monetary policy. Following the fourth quarter monetary policy committee meeting, the People's Bank of China reiterated that it would keep the yuan basically stable. The PBoC said it will push forward interest rate and exchange rate reforms, adding that it will bring about the reasonable growth in credit and social financing.
Meanwhile, China's local government debt surged to CNY17.9 trillion at the end of June, according to figures published by the National Audit Office. The total debt for central and local governments came in at CNY30.3 trillion, or about 53% of gross domestic product.
Back in the UK, it could take five to 10 years before people trust Barclays again, said Chief Executive Anthony Jenkins Monday, after confidence in the bank took a hit over a swathe of scandals, accusations and fines, the BBC reports.
Over recent years the bank has been accused and charged with foreign exchange rate fixing, manipulation of rates, the payment protection insurance scandal, miss-selling of interest rate swaps, and has subsequently been slapped with huge fines, all causing public faith in the bank to take a hit.
However, focused on a quantifiable result, Jenkins said that he has set Barclays the target of being more trusted than not by 2018, with progress measured and monitored in a systematic way. Shares in Barclays are currently up 1.1%.
AIM All-Share-constituent 600 Group, down 16%, is the index's biggest loser. The company said that an asset sale to Qingdao D&D Investment Group Co Ltd, rather than a full takeover by D&D of 600 Group, is the best way to move forward for the approach from D&D that it announced on September 11.
Still to come in the data calendar Tuesday, the US Redbook index is released at 1355 GMT, ahead of the S&P/Case-Shiller home price indices at 1400 GMT. The Chicago purchasing managers' index for December is scheduled at 1445 GMT, with US consumer confidence information expected at 1500 GMT.
By James Kemp; [email protected]; @jamespkemp
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