London’s FTSE 100 finished higher today despite yet more data signalling the UK is on a one ticket to recession.
The capital’s premier index climbed 0.17 per cent to 7,465.24 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, jumped 0.4 per cent to 19,500.5 points.
Traders seemingly shrugged off a fresh purchasing managers’ index today that revealed the UK private sector economy is still shrinking.
The flash PMI for November inched ever so slightly higher to 48.3 points from 48.2 in October, meaning it has now been below the 50 point growth threshold for four months in a row.
FTSE 100 retailers posted a strong day ahead of Black Friday this week.
Mike Ashley’s Fraser bumped 3.99 per cent higher, while Primark owner Associated British Foods added 2.63 per cent.
Analysts also said betting groups listed on the index such as Flutter Entertainment and Entain could receive a boost from punters laying bets on the World Cup.
“The scope for shock results like the Argentina, Saudi Arabia game potentially has the scope to drive an increase in betting patterns as the tournament progresses,” Michael Hewson, chief market analyst at CMC Markets UK, said.
Short haul airlines easyJet and Wizz Air propped up the mid-cap FTSE 250, climbing 2.85 per cent and 5.47 per cent respectively.
The pound strengthened sharply against the US dollar, adding 1.2 per cent. UK borrowing costs slipped over 12 basis points to nearly three per cent.