European stocks follow Wall St higher
A weakening euro and bullishness washed over from Wall Street have kick-started gains in European stock markets. The German DAX index is probing new records and even Spain’s IBEX is bouncing back from its Catalonia woes with some gains. Stock market investors are treating the political upset in Catalonia as a Spain-only issue.
Ferguson top brass on the FTSE 100
The FTSE 100 was flat to lower in early trading on Tuesday. Losses on UK shares when other European markets are rising is thanks in part to the British pound rallying off its lows. Sterling has found some support with Boris Johnson apparently “signed on” to Theresa May’s Florence Brexit speech ahead of UK construction data.
The FTSE has had a positive start to the final quarter of 2017 with a one-month high but now approaches 7450, a level which has resisted higher prices since early August. Homebuilders gave up some of yesterday’s Help-to-Buy induced gains. There’s no sense that the scheme is any less helpful to homebuilders a day later but some giveback is perhaps needed after £1 billion in market cap was added to the shares on Monday.
Ferguson (LON:FERG) shares were top risers on the FTSE 100 after the plumbing supplies firm reported a share buyback alongside earnings. Its new name and new US-focus appear to be doing the trick. The switch away from slower European markets, including a “pretty weak” UK division to the US where business confidence is on the rising boosted full-year pre-tax profits by 75%. Ferguson now looks like a good play within UK equities on Trump’s promised US infrastructure spending.
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