FTSE 100 watch: Trump tax hopes continue to support Footsie

on Feb 13, 2017

US President Donald Trump’s promise to unveil new tax plans has continued to support the FTSE 100 in today’s session, along with firmer metals prices which have fuelled demand for London-listed miners. Glencore (LON:GLEN) is currently the biggest blue-chip riser in percentage terms, further benefitting from upbeat broker comments.

As of 12:13 GMT, the Footsie had added 5.69 points to stand 0.08 percent higher at 7,264.44, following upbeat leads from the US and Asia where stocks fond support in Trump’s tax reform promise.
“European investors seemed focus on the swell of positivity stemming from the US markets rather than the issues a bit closer to home,” Connor Campbell at Spreadex commented in a morning note.
Mining stocks are also giving the blue-chip index a lift today, tracking copper prices higher. Glencore is leading the sector higher, after Morgan Stanley hiked its rating on the shares from ‘underweight’ to ‘equal weight’.

“Post 2016 Glencore’s valuation multiples, financial risk, downside to PT $0.00 and risk reward skew are similar to its London peers,” the analysts said in a note, as quoted by Reuters, adding that “reinvestment or return of excess cash is the key value driver ahead”. Glencore’s share price is currently 2.45 percent better off at 328.60p.
Hikma Pharmaceuticals (LON:HIK) has been another prominent Footsie riser after announcing that it had inked an exclusive licensing and distribution agreement with Finland’s Orion Corporation for its new dry power inhaler. Under the terms of the agreement, the FTSE 100 group has the exclusive rights to register, distribute, market and sell the product in all of its MENA markets. Hikma’s share price has added 0.93 percent to 1,955.00p so far today.
**The FTSE 100 index was 0.12 percent up at 7,267.69 points as of 12:28 GMT on Monday, 13 February 2017.**

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