FTSE 100 closed higher on Tuesday, aided by a weaker pound and as US stocks rallied.
Footsie closed nearly 28 points, or 0.39%, at 7,226, while the mid-cap FTSE 250 gained over 57 points at 19,829.
Against the Euro, sterling was down 0.05%, while against the US dollar, it shed 0.34%. On Wall Street, all three major benchmarks are higher at the time of writing with the Dow up over 214 points.
"European markets are higher this afternoon as traders are less worried about the state of global politics," said analyst David Madden, at CMC Markets UK.
"Traders are viewing no more bad news as a positive and are keen to buy back into the stock market."
Big cap miners like Rio Tinto (LON: RIO), up 1.21% to 3,775p, were among the podium takers on FTSE 100, with steelmaker EVRAZ (LON:EVR) top winner, up 6.6% to 389.30p.
It came after new data showed the Chinese economy grew by 6.8% in the first quarter, while economists were expecting a reading of 6.7%.
"The retail sales report was also well received, after it showed growth of 10.1%, compared with the 9.7% that dealers were anticipating," said Madden.
Consumer goods giant Reckitt Benckiser Group (LON:RB.) was top loser, with shares down 3.18% at 5,806p.
After an early afternoon lull, the FTSE 100 recovered its poise as it followed the US markets higher towards the end of the trading day in London.
With only half an hour or so to go, the index of blue chip shares was up 27.5 points, or 0.4%, to 7,225.7.
UK-listed Russian miner Evraz Holding PLC (LON:EVR), up 5.9% to 386.7p is still the day's top riser as US-Russia tensions seem to be easing.
Associated British Foods plc (LON:ABF) (up 3.8% to ?26.81) is also in the black after it managed to eke out a small rise in first-half revenues and pre-tax profits, thanks to a "remarkable" performance in its UK Primark stores.
Fellow high street retailer JD Sports Fashion PLC (LON:JD.) (up 5.4% to 372p) also posted some solid results, with profits at the FTSE 250 group climbing to record highs.
Consumer goods firm Reckitt Benckiser Group PLC (LON:RB.) has been by some way the day's biggest faller after it was downgraded by analysts at Credit Suisse ahead of first-quarter results due later this week.
The Dow Jones hit one-month highs at the opening bell in New York, rising 209.2 points, or 0.9%, 24,782.2, although it briefly surpassed 24,800 before falling back.
UnitedHealth Group Inc (NYSE:UNH), America's largest insurer, was the top riser among the Dow's 30 constituents as it beat expectations with its results and raised its earnings forecast. Shares are up 4.2% to US$240.12.
As for the tech-heavy Nasdaq, that rose just over 1% to 7,229.1, with Netflix Inc (NASDAQ:NFLX) (up 7.3% to US$330.26) leading the way after the video streaming giant posted the fastest revenue and sUBScriber growth in its history.
Completing the trio was the broader S&P 500, which is up 19.4 points, or 0.7%, 2,97.2.
Breakdown cover group AA plc (LON:AA.) is being taken to court by its former boss for ?225mln.
Bob Mackenzie was the executive chairman at the company until last year, when he was sacked for gross misconduct.
Following his dismissal, Mackenzie has claimed he is owed company shares as well as the nine-figure sum.
The AA said it will spend ?1mln over the next couple of years fighting the claims, but added that it hopes to recover the costs from Mackenzie once the battle is over.
Distribution and outsourcing giant Bunzl PLC (LON:BNZL) April trading statements are usually fairly brief affairs.
UBS expects the statement will largely confirm current market expectations and there may be some commentary around a couple of small new acquisitions announced in January.
UBS expects Bunzl to report a steady start and is forecasting organic sales growth year-on-year of 2.2% for the first quarter.
"By region, we expect +2.0% organic growth in North America, +1.0% in the UK & Ireland, +2.5% in Continental Europe and +5.0% in Rest of the World," UBS said.
The FTSE 100 has given up some of its earlier gains but is still above 7,200 - just.
The index of blue chip shares is currently up 5.1 points to 7,203.3, although it had been high as 7,220 earlier on.
Associated British Foods PLC (LON:ABF) (up 4.2% to ?26.91) is one of the top risers on the footsie after it managed to eke out a small rise in first-half revenues and pre-tax profits, thanks to a "remarkable" performance in its UK Primark stores.
On the FTSE 250, fellow high street retailer JD Sports Fashion PLC (LON:JD.) (up 5.3% to 371.7p) also posted some solid results, with full-year profits at record highs.
Those two firms helped to brighten up what has been a gloomy UK retail sector in recent months, with Marks and Spencer Group PLC (LON:MKS) gaining 2% to 281.8p and Next PLC (LON:NXT) (up 2.2% to ?51.74).
Retailers will also have been buoyed by economic data released this morning, which showed wage growth has overtaken inflation for the first time in a year, while employment is at record highs.
Topping the FTSE 100 risers though was UK-listed Russian miner Evraz PLC (LON:EVR), which has rebounded - gaining 5.8% to 386.4p - as tensions between Russia and the US begin to ease.
Consumer goods firm Reckitt Benckiser Group PLC (LON:RB.) is still the biggest faller after it was downgraded by analysts at Credit Suisse, ahead of first-quarter results due later this week.
The pound has held yesterday's gains and is still around US$1.433 - its highest level since Brexit - which is weighing on some of the footsie's big dollar earners, including British American Tobacco PLC (LON:BATS) (down 1.1% to ?39.98) and engine maker Rolls-Royce Holding PLC (LON:RR.) (down 2.7% to ?8.54).
Following on from a decent showing on Monday, US stocks over in New York are expected to open higher again today.
The Dow Jones is tipped to climb 178 points to leave it flirting with the 24,750 level, somewhere it hasn't been near for almost four weeks.
The tech-heavy Nasdaq is seen rising 60.0 points to 6,733.2 at the opening bell, while the broader S&P 500 is expected to gain 16.2 points to 2,693.8.
"The Dow is facing a 170-point leap after the bell, a move that would leave the US index knocking on the door of 24,750 for the first time in almost a month," said Speadex analyst Connor Campbell.
"That means the Dow has recovered almost all the value lost in the trade war fearing, Syria strike-concerned, Russian relations-worried mess of the last few weeks, even if none of those issues have really been resolved."
We heard from EY Item Club's Howard Archer earlier this morning, who said that an interest rate hike in May was still on track after today's earnings and employment data.
Panteon Macroeconomics' chief UK economist disagrees though ...
Latest UK wage data place little pressure on the MPC to hike next month. Year-over-year growth in wages is rising only due to extreme weakness in early 2017. Note the 3m/3m annualised growth in private sector wages slowed to a 10-month low in February: pic.twitter.com/sDCbBz21Ec
- Samuel Tombs (@samueltombs) April 17, 2018The last time the unemployment rate was lower than it is now, The Bay City Rollers were number one with Bye Bye Baby. pic.twitter.com/1MyavHCKA7
- Ian Jones (@ian_a_jones) April 17, 2018Among the small caps, there was some big news for Falcon Oil & Gas Ltd (LON:FOG) and its Beetaloo shale gas project in Australia.
Falcon, along with its partner Origin Energy, has been in limbo for the past year or so after authorities in the Northern Territory - where the project is located - put a ban on fracking.
That ban - or moratorium, as it also called - has now been lifted and means Falcon can now crack on with developing the project which is estimated to be host to 6.6 trillion cubic feet of gas.
Boss Philip O'Quigley said he was "very pleased" with the decision, but investors were a little more measured, with shares currently up 2.5% to 24.1p although they have risen by almost a third over the past month. Read more here.
Facebook Inc (NASDAQ:FB) has been told by a US federal court judge that it must face a class action lawsuit over the use of facial recognition technology.
The social media network has been accused of unlawfully using a facial recognition process on photos without users' permission.
The technology uses 'tag suggestions' by identifying users' friends in uploaded photos. The lawsuit alleges the technology violated Illinois law about the privacy of biometric information.
Should the courts find in favour of users, Facebook could be forced to pay out billions of dollars in damages.
Loss-making electric carmaker Tesla Inc (NASDAQ:TSLA) has temporarily suspended its Model 3 assembly line once again.
The company said the five-day was a planned move which would allow it to "improve automation and systematically address bottlenecks".
It is the second time since February that Tesla has halted the production line for its Model 3 at Tesla's plant in California, putting even more pressure on the firm's production targets which it has repeatedly missed in the past.
Last week, Musk said Tesla had been using too much automation to make its Model 3 which was actually slowing down production.
Yes, excessive automation at Tesla was a mistake. To be precise, my mistake. Humans are underrated.
- Elon Musk (@elonmusk) April 13, 2018Tesla shares are down 1.5% in pre-market trading over in New York at US$287.25.
The pound held its gains from Monday against the US dollar, but some decent employment and earnings data sparked the FTSE 100 into life.
The index of blue chip shares is currently up 13.3 points, or 0.2%, to 7,211.5.
That's despite the resurgence of the pound which crept up towards US$1.44 on Monday and is holding onto those gains today at US$1.433.
When sterling is strong that is usually bad news for the UK blue chips as it makes their overseas earnings - which account for about 75% of total sales - worth less when translated back into pounds and pence.
But some solid economic data helped the market to brush off those concerns.
In the three months to the end of February basic earnings grew 2.8% compared to the same period a year earlier, and with inflation now at 2.7%, real wages are now growing for the first time in a year.
On top of that, the labour market continues to strengthen with unemployment falling and employment reaching record highs during the period.
Away from the macro stuff, retailers were particularly buoyant, and not just because there are signs that the squeeze on British consumers might be coming to an end.
FTSE 250-listed JD Sports Fashion PLC (LON:JD.) reported record profits in its latest full-year results, thanks to continuing strong demand for fashionable trackies and trainers, which sent its shares up by 6.6% to 376.3p.
Associated British Foods PLC (LON:ABF) was also in demand after its Primark stores managed to grow UK like-for-like sales by 3% in the first half - a feat it called "remarkable", given the challenging industry conditions and bad weather. ABF shares rose 3.8% to a six-week high of ?26.80.
A positive read across from Primark's solid showing helped to prop up some of the value clothing chain's high street rivals.
Next PLC (LON:NXT) is up 2.3% to ?51.78, while Marks and Spencer Group Plc (LON:MKS) has gained 1.7% to 281.1p, with retail investors also encouraged by the economic data.
Also moving higher was Russian miner Evraz Holdings PLC (LON:EVR) - up 5.6% to 385.6p - as tensions between the US and Russia seem to be easing.
Engineering giant GKN PLC (LON:GKN) was another riser, up 2.9% to 483.4p, after Melrose Industries PLC (LON:MRO) confirmed its 467p a share offer had been taken up by more than 80% of shareholders. De-listing is expected towards the end of May.
Consumer goods firm Reckitt Benckiser Group PLC (LON:RB.) led the fallers after it was downgraded by analysts at Credit Suisse to 'underperform' from 'neutral' ahead of results due later this week.
The strong pound was weighing heavy on a couple of the big dollar-earners, including British American Tobacco PLC (LON:BATS) (down 1.1% to ?40) and Rolls-Royce Holding PLC (LON:RR.) (down 1.9% to ?8.61).
#UK #labour market decent with #employment up 55,000 in 3 months to Feb to new record high of 32.262 million & #jobless down 16,000 causing #unemployment rate to drop to new low of 4.2%. But headline #earnings growth weaker than expected as stable at 2.8% in 3 months to Feb (1)
- Howard Archer (@HowardArcherUK) April 17, 2018(2) But headline #earnings growth held down by lower bonus payments in Feb itself. Significantly, underlying #earnings growth picked up to 2.9% in Feb itself & 2.8% in 3 months to Feb. Data likely to keep #BOE on track to hike #interest rates to 0.75% in May
- Howard Archer (@HowardArcherUK) April 17, 2018After a year-long squeeze on consumers' pockets, wage growth has finally overtaken inflation, according to the latest date from the Office for National Statistics.
In the three months to the end of February, basic earnings, excluding bonuses, rose by 2.8% compared to the same period last year.
With inflation dipping to 2.7% in February, that means real wages are now rising by 0.1%.
The number of unemployed people in the UK fell by 16,000 between December and February to 1.42mln, while the unemployment rate fell slightly to 4.2% - the lowest level since 1975.
As for employment, that hit an all-time high of 32.26mln, according to the ONS.
So wages to Feb at 2.8% now above CPI for Feb which was 2.7%.
It's only 0.1% but symbolic nonetheless... #gbp
The FTSE 100 ignored the more buoyant mood on Wall Street overnight and Asia earlier to get off to a lacklustre start, with index of blue-chips falling three points to 7,194.75.
The brakes were applied, thanks to the pound, which hit a post-Brexit high of just shy of US$1.44, hitting the dollar earnings stocks.
"After a thorough roasting on Monday, the Footsie continued to be on the back foot this Tuesday, missing out on the gains seen elsewhere as it wilted in the face of sterling's sterling performance," said Connor Campbell of Spreadex.
Powder was presumably being kept dry ahead of UK inflation data later, which could herald a May hike to the cost of borrowing.
No doubting the star of the day: Primark owner Associated British Foods (LON:ABF) advanced 4% in the wake of its prelims.
While sales from the discount fashion chain wilted in the most recent weeks, thanks to the late cold snap in Britain, the decline wasn't as precipitous as expected.
That may explain why Next Plc (LON:NXT) rose 2% in ABF's wake.
The metals stocks were also in demand with Evraz (LON:EVR) up 4%, followed by Fresnillo (LON:FRES) and Antofagasta (LON:ANTO).
PowerHouse Energy Group PLC (LON:PHE) is to make its hydrogen-from-waste technology available to bus fleet operators in Bulgaria and Romania. Tresoil, a Bucharest-energy group, will sell buses powered by the Powerhouse's DMG system and manufactured by Wrightbus, a specialist in hydrogen vehicles.
Tertiary Minerals PLC (LON:TYM) remains in constructive dialogue with the relevant Swedish authorities with regard to the granting of a mine permit for its Storuman fluorspar project. Detailed additional environmental analysis has now been submitted to the Mines Inspectorate.
Skin health specialist SkinBioTherapeutics PLC (LON:SBTX) said the 'cream' formulation of its SkinBiotix technology has passed effectiveness studies in models of skin.
Approvals have now been received for Ironridge Resources Ltd (LON:IRR) to commence drilling at the Ewoyaa lithium project in Ghana and, accordingly, earthworks to allow drill access and for drill pads are now underway. The plan is to undertake approximately 7,000 metres of reverse circulation and diamond drilling. That could amount to up to 60 holes over two phases, with drilling expected to commence late April to early May.
Falcon Oil & Gas Ltd (LON:FOG, CVE:FO) is now clear to get to work with its major shale discovery in Australia's Northern Territory after the regional government has lifted its moratorium on hydraulic fracturing. It is long awaited good news for the junior oil and gas firm, which has essentially been on hiatus whilst the suspension was in place
PCG Entertainment PLC (LON:PCGE) has provided an update on progress in its media, gambling and environmental technologies focuses in the Chinese market.
ImmuPharma PLC (LON:IMM) said it believes there is a "significant opportunity" for its drug Lupuzor, used to treat autoimmune disease lupus, following the release of top-line results from a Phase III trial. The data revealed Lupuzor was more effective than the placebo (52.5% versus 44.6%). But because the response rate for those taking the non-active medication plus the "standard of care" was so high, the end-point of the study was not achieved. That 'end-point' was a statistically significant beneficial impact from Lupuzor.
Obtala Limited (LON:OBT) has said it will fully review the potential financial implications of a rulling by the Ministry of Land, Environment and Rural Development (MITADER) in Mozambique on the exploitation and export of endangered species of timber.
Sirius Minerals PLC (LON:SXX) has told investors that its debt-for-equity offer has received acceptances accounting for US$63.8mln. The UK mine developer, earlier this month, offered holders of its convertible bonds the opportunity to make an early switch to equity, offering them additional incentive shares along with the due equity.
App distributor appScatter Group PLC (LON:APPS) is to market its platform to customers of ironSource, one of Israel's fastest growing companies. Appscatter's platform cover more than more than 75 app stores and this deal will see it marketed to ironSource's community.
Jubilee Metals PLC (LON:JLP) has boosted quarterly production of platinum group metals at its Hernic project in South Africa by 30%. Revenues and operational earnings also improved, while unit costs were kept at an impressively low US$434 per ounce of PGMs.
Alliance Pharma PLC (LON:APH) is selling the Chinese rights to Forceval, a micro-nutrient supplement used in pregnancy, for ?2.9mln. It is doing so via the disposal of its 60% stake in a company called Unigreg Limited to Pacific Glory Development.
Amryt Pharma PLC (LON:AMYT) saw sales of its cholesterol treatment Lojuxta surge in 2017 and is confident of further sales growth this year. As announced in March, revenues from Lojuxta (lomitapide), which treats a rare life-threatening disorder that causes abnormally high levels of "bad" cholesterol, contributed ?,?11.9mln in 2017, as against ?,?800,000 or so in 2016, when the company only had the rights to the treatment for one month.
Background check services and technology provider ClearStar Inc (LON:CLSU) is set for a "pivotal" 2018 after reporting solid results for the year just gone. The flexibility of the labour market continues to expand and that is increasing the demand for ClearStar's direct services and is providing new opportunities for revenue generation.
Union Jack Oil PLC (LON:UJO) has told investors that its 20% owned Fiskerton Airfield Oilfield project has resumed production. Meanwhile, new efforts to secure planning permission for the Wressle field are also advancing. The onshore oil junior has a 15% stake in Wressle, where operator Egdon is currently conducting field work to address issues raised in the previously unsuccessful planning application - they relate to ground water and hydrological risk.
MySQUAR Limited (LON:MYSQ), the Myanmar-language social media, entertainment and payments platform whose principal activity is to design, develop and commercialise Myanmar-focused internet-based mobile applications, announced that it has appointed Daniel Stewart and Company as its joint broker with immediate effect. SP Angel Corporate Finance will remain as the group's joint broker.
The Footsie is seen rallying modestly in early trade on Tuesday following overnight gains by US and Asian markets, although much will depend on the latest batch of UK economic data.
Spread betting firm IG expects the FTSE 100 index to open around 18 points higher at 7,261, having shed 66 points on Monday.
Overnight on Wall Street, the Dow Jones jumped 212 points higher to 24,573 as some strong corporate earnings offset any worries over the weekend's air strikes against Syria.
Asian shares more modestly higher today but were helped by data showing China's economy grew a little faster than expected in the first quarter.
On currency markets, the pound was consolidated yesterday's versus both the dollar and the euro ahead of the latest UK labour market report.
A further acceleration in wage growth could be enough to cement expectations for a May rate hike from the Bank of England especially if inflation numbers - due on Wednesday - continue to reverse.
Policymakers expect wages to rocket this year, given the tight jobs market, with a further acceleration expected in the latest data. Economists at ING are forecasting UK regular pay growth to edge up to 2.8% year-on-year.
In a preview, ING pointed out that, admittedly, the numbers are being flattered by a weak patch this time last year, but so far, the data received since November does suggest pay pressures are building, as skills shortages intensify in certain sectors.
The ING economists feel the consensus for an increase in employment of 55,000 looks a little low, and they favour a reading of around 80,000-90,000.
On the corporate front, the health of UK retailers will be high on the agenda on Tuesday, with updates due from JD Sports Fashion PLC (LON:JD.), and Primark owner Associated British Food PLC (LON:ABF).
Primark already contributes more than half of AB Foods profits, and that could grow even further if it successfully expands into Europe and the US.
Back in November' full-year results, Primark posted a 12% rise in revenues, and with shares trading at a premium to most other UK retailers, investors will be looking for similar growth once again.
Meanwhile investors already have a fairly good idea of what to expect from JD Sports' full-year results after a bullish update and forecast upgrade back in January,
Back in that statement, the sportswear and athleisure retailer said it expected profit before tax to top ?300mln, with sales also set to jump despite "challenging comparatives".
A couple of weeks ago JD unveiled the ?400mln acquisition of US peer The Finish Line, so more details on the plans for that business will be keenly eyed, now it is officially part of the group.
Trading update: Rio Tinto PLC (Q1) (LON:RIO), Ashmore group PLC (LON:ASHM), Porvair PLC (LON:PRV)
Interims: Associated British Foods PLC (LON:ABF), APC Technology Group PLC (LON:APC), Egdon Resources PLC (LON:EDR)
Finals: AA (LON:AA.), AFI Development PLC (LON:AFRB), ClearStar Inc (LON:CLSU), Christie Group PLC (LON:CTG), Flowtech Fluidpower PLC (LON:FLO), Filta Group Holdings PLC (LON:FLTA), Highland Gold mining Limited (LON:HGM), JD Sports Fashion PLC (LON:JD.), Mi-Pay Group PLC (LON:MPAY), TP Group PLC (LON:TPG)
Economic data: UK unemployment; UK average earnings; German ZEW survey; US housing starts; US industrial production