FTSE 100 is highest since pandemic began as US markets recovered overnight
The FTSE 100 is at its highest since the start of the pandemic as US markets rallied overnight and this morning’s trading statements were generally bullish. The blue chip index added 43 to 7,534.
Sainsburys improved its annual profit before tax by £ 60million. Grocery sales rose 0.1% year-on-year over the six-week Christmas period as omicron sparked a checkout rush.
JD Sports also said it will exceed expectations despite the supply issues. An intense Black Friday and Christmas season, along with fiscal stimulus measures implemented in the United States, boosted sales, the sneaker and sportswear retailer said.
The World Bank, however, has warned of a “sharp slowdown” in global growth as inflation has hit a 25-year high. Pandemic issues and supply chain issues will continue to put pressure on the global economy, he said.
Among small caps. Miner Great Western signed contracts for a spring start at Olympic Gold and Rock House. At Olympic Gold, the plan is initially to track potential veins in the shallow area of the Trafalgar Hill area to track the high grades seen last year.
InnovaDerma rose 7% after an update for the 6 months to December 31 said its financial performance was much better than the first half of 2020. The Skinny Tan group added that it is already experiencing a rebound after a cooling exchanges before Christmas due to Omicron.
Bradda Head Lithium also rose as it said preliminary testing on samples from its Burro Creek lithium project was encouraging. Metallurgical work has indicated that operating and capital costs could be much lower than originally forecast.