UK’s FTSE 100 hits new high on upbeat economic data, earnings

Wait 5 sec.

The UK’s FTSE benchmark index closed at a record high on Thursday after upbeat data underscored the economy’s resilience, while a strong earnings run boosted financials.The blue-chip FTSE 100 closed up 0.56% at 10,245.99 points. The domestically focused mid-cap index added 1.4%, touching a four-year high.UK’s economy grew 0.3% in November, its fastest pace since June, helped by Jaguar Land Rover’s return to full production after a cyberattack.“Today’s upside surprise in UK GDP is not only a welcome boost for government confidence but also creates a potential catalyst for inflows into both the FTSE 100 and the lagging FTSE 250, reinforcing a more constructive near-term outlook,” Axel Rudolph, senior financial analyst at IG, said.The data failed to affect the policy rate outlook, with traders pricing in around 40 basis points of Bank of England rate cuts by September.Fund manager Ashmore Group topped the FTSE 250 with a 23% jump – its biggest single-day jump on record – after reporting strong net inflows. Schroders  rose 9.8% after it said annual profit would beat market forecasts.The money managers collectively powered the investment banks and brokerages index, up 5.3%, its highest in one year, outperforming its peers.A real estate focussed index rallied 2.4%, with Savills up 8.8% following solid annual growth outlook and self-storage firm Safestore Holdings up 5.3% following an update of improved store performance.3i Group was up 10%, helped by UBS data pointing to a pick-up in sales in France at the group’s discount retailer Action, 3i’s largest portfolio company.Homeware retailer Dunelm sank 19.5% after warning that a challenging macroeconomic environment and cautious consumer spending would eat into its annual profit.Oxford Biomedica jumped 13.5% after the cell and gene therapy manufacturer confirmed receipt of an unsolicited all-cash offer from funds managed by EQT.Greensill Bank suing UK government for $441 million over COVID loan guaranteesGreensill Bank, a subsidiary of collapsed finance firm Greensill Capital, is suing UK’s business department for just over 330 million pounds ($441.7 million) after it cancelled guarantees for COVID-19 business loans, court documents showed.The administrators of the German-based bank sued the UK Department of Business and Trade (DBT) last year after the government terminated guarantees for loans made by Greensill Capital to businesses linked by commodities tycoon Sanjeev Gupta.