MARKET REPORT: FTSE 100 soars to a five-year high on back of US hopes

The FTSE 100 reached its highest level in nearly five years in a flying start to 2023.

On a fourth day of gains since trading resumed after the New Year holiday, the London blue chip index rose 0.9 percent, or 66.04 points, to 7699.49. That is the highest level since August 2018.

The rally was reflected in the more domestically focused FTSE 250, which added 0.2 percent, or 41.29 points, to 19504.72.

Both benchmarks have gained four days since trading resumed after the New Year.

AJ Bell investment director Russ Mold said: “As the new year begins, 2023 is looking vibrant for the FTSE100, with the index rising every session so far.

“Small steps forward are a winner given the difficult background.” Sentiment was boosted by new economic data from the US.

U.S. employers hired an additional 223,000 new positions, while the unemployment rate fell from 3.6 percent to 3.5 percent.

But perhaps of major interest to investors was weaker wage growth that could – eventually – lead the US Federal Reserve to slow the pace of rate hikes.

Shares of shipping group Clarkson rose after it reported an optimistic end to the year.

The FTSE250 company pointed to its brokerage division, which connects shipowners with clients looking to chart vessels, as it praised “strong trading” in the fourth quarter of 2022.

The group said it expects full-year earnings to be “ahead of current market expectations” by “no less than £98 million”.

That would be far more than the £69.4 million generated in 2021 and Peel Hunt’s analyst forecasts of £83.6 million. Shares in the company, which has 52 offices in 23 countries, rose 5.1 percent, or 160p, to 3305p. However, Peel Hunt warned that Clarkson will face a more difficult period this year due to the weakness in the dry bulk market.

Mike Ashley’s Frasers Group cut its stake in Hugo Boss to 3.9 percent, just two months after raising its stake to 4.3 percent. It controls another 25 percent of Hugo Boss through derivatives.

The fashion empire, which owns Sports Direct, Jack Wills and Flannels, said its maximum exposure in the luxury German designer brand is around £580 million, down from £840 million. Frasers shares fell 0.4 percent, or 3 pence, to 758 pence.

Pest control firm Rentokil Initial fell 3.7 percent, or 19 pence, to 501.4 pence after city broker BNP Paribas began coverage with an “underperform” rating.

Essentra, the mid-cap components business, fell 6.8 percent, or 16 pence, to 218 pence after a rough end to 2022.

The group said revenue for the last three months of last year was 3 percent lower than the same period in 2021. That meant revenue for 2022 would likely have increased 6.5 percent.

But analysts at Jefferies warned that the downturn from late last year is expected to last through late 2023.

Topps Tiles accused one of its largest investors of misleading other shareholders in a battle for control. MS Galleon owns nearly 30 percent of the tile retailer and has called for the departure of Darren Shapland, the company’s chairman, and the appointment of two others to the board.

But Topps said MS shared information with shareholders “that contradicts previous statements made directly to Topps.” Voting will take place on January 18.

Stocks were flat at 48p.

Curtis Banks Group has reached acquisition terms with digital investment platform provider Nucleus.

The offer of 350 pence per share values ​​the self-invested personal pension provider at around £242 million.

Shares of Curtis Banks rose 2.7 percent, or 9 pence, to 342 pence.