London close: FTSE consolidates Macron gains as gaze turns to US tax reforms

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Sharecast News | 25 Apr, 2017

Stocks in London spent Tuesday consolidating their gains after Monday's sprint higher on the outcome of the first round of voting in France's presidential election, with traders now turning their attentions to potential US tax reforms.

Gains among blue-chip shares were limited on Tuesday by sterling's minor gains on the dollar, although it fell on the euro.

The FTSE 100 closed Tuesday up 0.15% to 7,275.64, and the FTSE 250 finished down 0.10% to 19,582.33. In Europe, the Euro Stoxx 50, Dax and Cac 40 were unconvincingly ahead.

Wall St was moderately higher as traders indulged in some front-running before US President Donald Trump presenting his tax reforms in that country tomorrow.

"European markets appear to be consolidating their (Emmanuel) Macron bounce," said Michael Hewson, chief market analyst at CMC Markets UK.

"Markets are now turning their attention to how effective he (centrist and pro-EU candidate Macron) is likely to be," said Hewson in a note.

"Given the political difficulties any new French President is likely to face, there is the prospect that for all the euphoria in the past 48 hours any positive effect could be more micron than Macron."

Jasper Lawler, senior market analyst at London Capital Group, said a Macron presidency avoided the immediate threat of Frexit, but he was unlikely to be France’s knight in shining armour.

"Without an established party behind him, Macron may find victory in parliamentary elections in June harder to come by," said Lawler.

"The dip-buying frenzy that now happens after every geopolitical shock is seeing some profit-taking. It's quite amazing to behold the same dip-buying strategy applied whether the geopolitical shock happens (Brexit, Trump) or it doesn’t (French election)."

On the data front, the UK budget deficit met Chancellor Philip Hammond's much reduced target but public sector borrowing rose more than expected in March and was forecast to rise further.

Among London blue chips, pharmaceuticals were generally performing well, with banks putting in a strong showing, too. Hikma Pharmaceuticals, Shire, Barclays, Royal Bank of Scotland and Standard Chartered were all on the front foot.

Commercial property, supermarkets and the broader financial sector also did well.

Wealth manager St James's Place racked up solid gains after saying first-quarter gross inflows rose 32% to £3.23bn with net inflows up to £1.99bn from £1.36bn. Group funds under management rose to £79.84bn from £62.02bn.

Micro Focus International announced changes to its board and management team due to its pending £7bn merger with Hewlett Packard Enterprises' software business.

Whitbread shares slumped after the Premier Inn and Costa owner beat profit forecasts for the year and reported a good start to 2017, but warned of a tougher consumer environment than last year.

AstraZeneca has received full marketing authorisation from the European Commission for Tagrisso for the treatment of adult patients with non-small cell lung cancer. The full approval is based on the results of the Phase III AURA3 trial, which were presented last year.

Heavily-weighted mining stocks were hit after Goldman Sachs cut its ratings on Anglo American, Antofagasta and BHP Billiton, and removed Vedanta Resources from its Conviction List.

Market Movers

FTSE 100 (UKX) 7,275.64 0.15%
FTSE 250 (MCX) 19,582.33 -0.10%
techMARK (TASX) 3,476.85 0.39%

FTSE 100 - Risers

Hikma Pharmaceuticals (HIK) 1,905.00p 3.42%
Glencore (GLEN) 312.20p 2.19%
Convatec Group (CTEC) 305.90p 1.80%
Royal Bank of Scotland Group (RBS) 253.40p 1.64%
Barclays (BARC) 222.80p 1.64%
Sage Group (SGE) 666.00p 1.60%
Ashtead Group (AHT) 1,649.00p 1.48%
Standard Chartered (STAN) 728.40p 1.38%
Shire Plc (SHP) 4,626.50p 1.37%
Hammerson (HMSO) 602.50p 1.26%

FTSE 100 - Fallers

Whitbread (WTB) 4,000.00p -7.13%
Kingfisher (KGF) 326.40p -3.20%
Randgold Resources Ltd. (RRS) 6,790.00p -2.58%
Associated British Foods (ABF) 2,821.00p -2.01%
SSE (SSE) 1,398.00p -1.34%
Admiral Group (ADM) 2,016.00p -1.32%
International Consolidated Airlines Group SA (CDI) (IAG) 562.00p -1.23%
Taylor Wimpey (TW.) 199.80p -1.09%
Micro Focus International (MCRO) 2,510.00p -1.06%
Provident Financial (PFG) 3,196.00p -1.02%

FTSE 250 - Risers

Elementis (ELM) 314.70p 5.46%
Weir Group (WEIR) 2,080.00p 3.84%
Aveva Group (AVV) 1,986.00p 3.12%
Ascential (ASCL) 340.40p 2.90%
Carillion (CLLN) 222.50p 2.87%
Tullow Oil (TLW) 217.00p 2.41%
Petrofac Ltd. (PFC) 846.00p 2.17%
Allied Minds (ALM) 165.00p 2.10%
Clarkson (CKN) 2,912.00p 2.03%
Big Yellow Group (BYG) 778.50p 2.03%

FTSE 250 - Fallers

Greencore Group (GNC) 227.80p -7.25%
Cobham (COB) 130.50p -3.55%
Dunelm Group (DNLM) 603.50p -3.29%
Acacia Mining (ACA) 403.40p -3.12%
Nostrum Oil & Gas (NOG) 445.00p -2.60%
Just Eat (JE.) 580.50p -2.44%
Millennium & Copthorne Hotels (MLC) 446.60p -2.25%
Kennedy Wilson Europe Real Estate (KWE) 1,087.00p -2.07%
Lancashire Holdings Limited (LRE) 696.00p -1.97%
Vectura Group (VEC) 139.80p -1.96%

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