FTSE 100 close: JD Sports springs London flagship index to 2018 high

London’s FTSE 100 index leapt to its highest level since 2018 in afternoon exchanges in the City today after a series of strong retailer earnings signalled the UK consumer is holding up well amid the cost of living crunch.

The FTSE 100 index climbed 0.99 per cent to 7,770 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed just under one per cent to 19,575.95 points.

However, the premier index gave up some gains to eventually close up 0.4 per cent at 7,724.99 points.

The FTSE 100 has kicked off 2023 strongly, advancing almost three per cent to reach a near four year high.

Brits heading to the high street and snapping up deals online over the Christmas period helped boost trainer retailer JD Sports in the weeks of 2022.

The firm said revenue climbed around a fifth in the six weeks to December, sending its shares up nearly seven per cent and to the top of the FTSE 100.

“The British retailer enjoyed a bumper period of sales over the key Golden Quarter, demonstrating the robustness of demand in the face of pressures from a softening consumer outlook and inflated energy bills,” Victoria Scholar, head of investment at interactive investor, said.

FTSE 100 bagged more gains today extending its new year rally

Fellow fashion retailer Frasers Group, owned by Mike Ashley, hoovered gains in its slip stream.

Supermarket Sainsbury’s said today it bagged record Christmas sales, but that was not enough to drag its shares into the green. They fell 1.59 per cent.

Investors are watching closely a string of bellwether retailers releasing results this week for signs on how Brits are responding to the cost of living crisis.

So far, spending seems to be holding up well, although companies have warned demand will steadily recede throughout 2023.

Insurer Admiral Group shed more than six per cent, the biggest fall on the FTSE 100, after the Bank of England yesterday told insurers to beef up their plans to withstand pressures on their finances from the coming recession. 

Rival Aviva was also down sharply today.

Lloyds Bank’s shares were the most heavily traded in the opening session in London.

Pound sterling weakened around 0.2 per cent against the US dollar.

Oil prices surged around three per cent.

Gilt yields dropped 15 basis points. Yields and prices move inversely.