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LONDON MARKET CLOSE: FTSE 100 hits another record as adds 3% this week

London’s FTSE 100 hit another record high on Friday, rounding off a strong week with another gain, despite a robust US inflation reading threatening to spoil the party.

The FTSE 100 index added 60.97 points, 0.8%, at 8,139.83. It is its best closing level ever, and it earlier hit a record intraday high of 8,146.75.

The FTSE 250 was up 222.18 points, 1.1%, at 19,824.16, and the AIM All-Share rose 2.16 points, 0.3%, at 755.28.

For the week, the FTSE 100 added 3.1%, the FTSE 250 rose 2.2% and the AIM climbed 1.3%.

The Cboe UK 100 rose 0.9% to 813.49, the Cboe UK 250 added 1.1% to 17,127.78, and the Cboe Small Companies rose 1.4% to 15,661.70.

In European equities on Friday, the CAC 40 in Paris rose 0.9%, while the DAX 40 in Frankfurt surged 1.4%.

In New York on Friday, the Dow Jones Industrial Average was 0.2% higher, the S&P 500 was up 1.0%, and the Nasdaq Composite jumped 2.0%, aided by strong well-received tech earnings overnight.

The pound was quoted at $1.2453 late on Friday afternoon in London, lower compared to $1.2490 at the equities close on Thursday. The euro stood at $1.0676, down against $1.0713. Against the yen, the dollar was trading at JP¥157.41, markedly higher compared to JP¥155.52, as the Japanese currency sunk after a Bank of Japan left rates unmoved.

US inflation pressure was hotter than expected last month, according to the Federal Reserve’s preferred gauge released Friday.

The Bureau of Economic Analysis said the core personal consumption index gauge grew 2.8% in March, the annual pace of growth unmoved from February. In February, it had cooled slightly from 2.9% in January.

The latest reading topped the FXStreet cited consensus of 2.6%.

The core PCE reading does not include food and energy. The annual headline PCE figure, which does, hotted up to 2.7% in March, from 2.5% in February, and topping the consensus of 2.6%.

Analysts at ING said the data was ‘not as bad as feared, but still too hot’.

‘Quarterly inflation data surprised to the upside and led the market to brace for a very unpleasant MoM print today. Thankfully it was due to upward revisions, primarily to January, with the March figure coming in line with initial expectations. Nonetheless, inflation remains too hot and September remains the earliest opportunity for an interest rate cut,’ ING added.

In London, NatWest shares climbed 6.1%.

The Edinburgh-based lender said operating profit fell 27% to £1.33 billion in the first three months of 2024 from £1.81 billion a year before, but it highlighted ‘improving’ confidence amongst customers.

This profit decrease reflected a 10% drop in total income to £3.48 billion from £3.88 billion. Within this, net interest income decreased 8.6% to £2.65 billion from £2.90 billion.

Gary Greenwood at Shore Capital noted the operating profit figure beat consensus expectations by around 5% reflecting positive variances on net interest income, impairment and litigation and conduct charges that were partly offset by negative variances on non-interest income and costs.

Anglo American rose 3.3% as it rejected an ‘opportunistic’ takeover tilt from larger peer BHP. BHP on Thursday confirmed it had offered to buy Anglo American in an all-share deal valuing the mining group at £31.1 billion.

In a formal response, Anglo American on Friday said its board had considered the BHP proposal with its advisers and concluded that the offer ‘significantly undervalues’ the company and its future prospects.

‘In addition, the proposal contemplates a structure which the board believes is highly unattractive for Anglo American’s shareholders, given the uncertainty and complexity inherent in the proposal, and significant execution risks,’ Anglo American said.

BHP fell 2.6%.

Elsewhere in the M&A space, Darktrace jumped 16%, after it agreed to be taken over by Thoma Bravo.

Darktrace said it has agreed to an all-cash takeover offer worth $5.32 billion from funds managed by private equity firm Thoma Bravo.

Chicago-based Thoma Bravo, which focuses on software investments, offers $7.75 in cash per Darktrace share.

Record shares rose 1.9% after it reported an increase in assets under management in the financial year just finished but said the pace of net inflows slowed.

The Windsor, England-based currency and derivatives manager said in the 12 months ended March 31 assets under management equivalent increased 17% to $102.2 billion from $87.7 billion the year before.

Net inflows were $6.8 billion for the year, down 25% from $9.1 billion before. Performance fees of £5.8 million were unchanged.

Chief Executive Jan Witte said: ‘I am excited to take over the reins as CEO at a time when the group’s AUME has reached new heights and the outlook for our business remains strong.’

Witte pointed out AUME had breached the $100 million mark for the first time in its 40-plus year history.

Brent oil was quoted at $88.26 late Friday, up from $86.48 late Thursday. Gold was quoted at $2,333.37 an ounce, higher against $2,331.32.

Monday’s economic calendar has a German inflation reading at 1300 BST.

The local corporate calendar has a trading statement from insurer Beazley.

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