Markets lift as sales figures boost London’s clothes sellers

European markets regained lost ground after a difficult start to the week as investors appeared to tackle Monday’s decline.

In London, the rise was led by major fashion retailers Next and JD Sports, as well as mining and gambling companies.

It enabled the FTSE 100 index of major London companies to rise by 46.12 points, or 0.6%.

It came as retail sales figures showed a 2.1% increase in December from the same month a year ago, also up 4.6% from 2019.

“However, the British Retail Consortium (BRC) has warned that consumer spending could suffer due to rising inflation and soaring energy bills,” said Oliver Males, expert at Spreadex.

He added: “The World Bank said today that it expects the global economy to grow only 4.1% this year, up from 5.5% last year, due to the Omicron variant.

“But despite this, many UK economists expect December and January to be stable as a worst-case scenario due to how the UK appears to be handling the virus compared to most other countries,” in particular in Europe. “

In New York, the Dow Jones edged up 0.1% after the UK markets closed, while the S&P 500 was up 0.5%.

In France, the Cac 40 closed up 1%, while the Frankfurt Dax remained fairly stable.

“European markets had a much better session today, although the bias was much more defensive in nature with health stocks outperforming, and today’s resilience continues to contrast with the performance of state stocks. “United, where the air looks a bit thinner,” said Michael Hewson, analyst at CMC Markets.

He added: “Dechra Pharmaceuticals distinguished itself near the top of the FTSE 100, after announcing it had acquired the worldwide rights to Verdinexor, a drug used in the treatment of canine lymphoma.

“Today’s upward move in Dechra stocks also reverses five days of steep declines that had seen stocks fall by more than 15% in the space of a week.”

On the foreign exchange markets, the pound lost 0.1% against the euro and would buy 1.1991 euro at the end of the day. Against the dollar, it rose 0.1% to 1.3619.

In corporate news, Darktrace hit near the top of the smaller FTSE 250 index after revealing higher earnings and sales prospects for the year.

The company said it has seen the number of its customers increase by almost 40%. The company fell from the FTSE 100 in December after its stock price halved from its peak in September.

On Tuesday, its shares climbed 6.9%.

Elsewhere, Games Workshop shares fell 10.9% when it said profits had fallen in the past six months.

The company said sales have increased, but costs are rising due to rising prices for freight, warehouses and logistics. He also took £ 15million from VAT revenue as a result of Brexit.

Pre-tax profits fell 3.7% in the six months to the end of November.

The biggest amounts on the FTSE 100 were Scottish Mortgage Investment Trust, up 57p to 1,196p, Next, up 346p to 8,000p, Dechra Pharmaceuticals, up 146p to 4,446p, JD Sports, up 6p to 218.8p, and Fresnillo, up 20.8p to 336.6p.

The biggest drops on the FTSE 100 were Reckitt, down 93p to 6,228p, United Utilities, down 1p to 116.1p, Diageo, down 44p to 3,805p, Croda International, down 92p to 8,942p, and SSE, down from 16p to 1,622.5p.

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