London markets join global Santa rally

London markets joined the global stock rally today after they missed out due to being shut at the start of the week for public holidays in the UK.

The capital’s premier FTSE 100 index closed 0.63 per cent higher at 7,418.76 points, while the mid-cap FTSE 250, which is more aligned to the health of the UK economy, finished 1.11 per cent higher at 23,529.68 points.

At one point, the FTSE 100 scaled to a 22-month high today, before losing some of its gains.

The world’s most closely watched stock indices shot up to record highs over the past couple of days after investors returned from the festive break.

In New York, the S&P 500 hit an intraday high yesterday, while France’s Cac 40 closed at its highest level ever.

Germany’s Dax 30 finished up 0.81 per cent at 128.45 points. In Asia, Japan’s Nikkei added 1.4 per cent and Hong Kong’s Hang Seng edged up 0.2 per cent.

Up until today, London’s markets have missed out on the so-called “Santa rally”, when stock markets rise after the end of the Christmas hiatus.

However, the capital’s top indexes have now joined the rally.

Retailers led the FTSE 100 higher this morning, driven by consumers ramping up spending to capitalise on post-Christmas sales causing investors to pour into the sector.

B&Q owner Kingfisher was among the best performers on the FTSE 100, climbing 2.74 per cent, supported by Next, which closed 2.17 per cent higher.

Meanwhile, on the FTSE 250, review site Trustpilot was the top dog, finishing up over 7.60 per cent.

The pound gained ground on the greenback, strengthening 0.33 per cent to buy $1.3478.