The FTSE 250 enjoyed its best day since July amid rising hopes that inflation will ease in the UK.
The London mid-cap index, which is more focused on the domestic market and exposed to the British economy, rose 3.47 percent, or 622.48 points, to 18,536.13.
It posted its biggest gains since July 19, when it rose 3.78 percent following optimistic inflation numbers. Yesterday’s spike came as inflation in the United States fell faster than expected last month in a sign that the US Federal Reserve will end its interest rate increases.
On Wall Street, the Dow Jones Industrial Average rose 1.4 percent, the S&P 500 gained 1.9 percent and the Nasdaq added 2.4 percent.
It also fueled hopes about the UK’s outlook, with official figures today expected to show inflation fell below 5 per cent in October.
DCC’s energy business landed its biggest deal in Germany after agreeing to buy Progas, a liquefied petroleum gas distributor, for around £140m.
Danni Hewson, head of financial analysis at AJ Bell, said: “Markets on both sides of the Atlantic rallied as expectations grew that the US fight against rising prices was all but over and despite some obstacles, the landing strip ahead seems just as smooth. as anyone could have expected.”
Back in London, the FTSE 250 was also boosted by a handful of positive updates.
The biggest riser on the index was scientific investor IP Group after Autifony, which was spun off from GSK (down 1.7 per cent, or 23.8p, to 1,383.4p) in 2011, signed a global licensing agreement with Nasdaq-listed Jazz Pharmaceuticals worth up to £617 million. The shares rose 11.4 per cent, or 5.2p, to 50.9p.
It was a good day for Babcock shareholders after the advocacy group said it will pay its first dividend in four years as it capitalizes on rising geopolitical tensions.
The shares added 3.9 per cent, or 15.8 pence, to 425.4 pence. Safety barrier maker Hill & Smith said its annual profit should beat the £118.6m forecast by analysts.
The improved outlook came after the group’s revenue rose 15 per cent in the four months to the end of October. The shares rose 5.5 per cent, or 96 pence, to 1,854 pence.
London’s top tier also made gains, with the FTSE 100 rising 0.20 per cent, or 14.64 points, to 7,440.47.
Stock Watch – Renalytix
Renalytix shares plunged after a series of dismal results.
The diagnostic group has created a test that can identify patients with type 2 diabetes who are at high risk for rapid progression of kidney disease.
But the company’s first quarter revenue halved to £400,000 in the three months to the end of September compared with the same period last year.
As a result, Renalytix said it aims to reduce its wage bill by more than 35 percent.
The shares fell 26.7 per cent, or 10p, to 27.5p.
Irish conglomerate DCC Energy has expanded its presence in Europe’s largest energy market.
The blue-chip company’s energy business landed its biggest deal in Germany after agreeing to buy Progas, a liquefied petroleum gas (LPG) distributor, for around £140m.
The deal followed a strong first-half performance from DCC Energy, which posted huge profits despite lower commodity prices hitting revenue.
The shares gained 12.5 per cent, or 582 pence, to 5,248 pence.
Ocado rose 10.1 per cent, or 51.8p, to 564.6p as the online grocer recouped some of its losses.
Land Securities pinned its hopes on seizing opportunities in commercial real estate next year as the landlord hopes for “higher for longer” interest rates to normalize. The shares rose 6.5 per cent, or 39.4p, to 644.4p.
Tobacco giant Imperial Brands was full of good news after its annual profits increased by more than a quarter and shareholders were rewarded with a higher dividend and share buybacks. The shares added 0.8 per cent, or 13.5 pence, to 1,801.5 pence.
Informa, the exhibition organizer, raised its revenue and profit forecasts for this year and expanded its share buyback program as business boomed.
Shares in the group, which is behind events including the Dubai Airshow, China Beauty Expo and London Tech Week, rose 5.3 per cent, or 37.4 pence, to 739.4 pence.
Colostomy bag maker Convatec’s revenue rose 6.7 percent in the ten months to the end of October.
This growth means it now expects revenue to rise between 6.75 percent and 7.5 percent, up from a previous forecast of 6 percent and 7.5 percent. The shares rose 5.2 per cent, or 10.8 pence, to 219.4 pence.
