After a strong rise yesterday, this morning’s trade in London has been a little more subdued but stocks have risen nonetheless. The FTSE 100 is higher by around 10 points on the day and the daily high is just over 35 points from its record peak. The pound is little changed and trading flat against the US dollar and slightly lower against the Euro.
US stocks lead the charge higher
Monday saw yet more records fall for US stock markets with all three major indices moving into uncharted territory. The Dow posted its 70th record close of 2017 last night with the year being arguably just as remarkable for the lack of any significant pullback as it has been for the strong gains seen. The FTSE 100 made its own all-time high of 7600 back in June and after a near 6-month consolidation the recent trade has this target once more in the cross hairs of the bulls.
Financials rally as ANC pick new leader
South Africa’s ruling African National Congress (ANC) party has elected Cyril Ramaphosa to succeed President Jacob Zuma as the party’s leader. The voting process has been long and drawn out with Mr. Ramaphosa edging out his rival Ms Dlamini-Zuma (the ex-wife of the current President) by 2440 votes to 2261. The news has been warmly welcomed by the markets with the South African Rand hitting its highest level since June against the US dollar shortly after the announcement and the stock market rallying. The best performing stocks are the financials with the banking sector gaining some 7% on the day. The moves can also be felt in London with Old Mutual the best performing stock on the FTSE and higher by almost 4%. The stock has also been aided by the sale of its Buxton UK wealth business for $800 million.