(Alliance News) - Stock prices in London opened mostly higher on Wednesday, while sterling appeared unphased for now by increased public sector net borrowing at home.
PSNB totalled GBP17.81 billion in December, up from GBP11.8 billion in November. The November figure was revised up from GBP11.25 billion, and the December one far outpaced FXStreet-cited market consensus of GBP13.4 billion.
For the year that ended December, UK government borrowing totalled GBP129.9 billion, the second-highest calendar year figure since monthly records began in 1993.
The FTSE 100 index opened up 22.80 points, 0.3%, at 8,571.09. The FTSE 250 was up 78.95 points, 0.4%, at 20,674.68, and the AIM All-Share was up 4.14 points, 0.6%, at 723.25.
The Cboe UK 100 was up 0.2% at 859.23, the Cboe UK 250 was up 0.4% at 18,071.75, and the Cboe Small Companies was down % at 15,746.11.
"London's [FTSE 100] index has found another spring in its step, rising to fresh record levels," commented Hargreaves Lansdown's Susannah Streeter. "It climbed to 8,565 before slipping back slightly. Investors are batting away concerns about the impact of President Trump's policies on the global economy. The make-up of the FTSE 100 also offers resilience in an uncertain world, with pharma, consumer staples, and utility stocks offering the prospect of stable returns whatever the economic weather."
Intermediate Capital Group led the FTSE 100, up 4.8%.
The private equity investor reported "strong fundraising" totalling USD7.2 billion in the third quarter ended December 31, with USD22 billion raised in calendar 2024 - more than double the amount raised the prior year.
Assets under management totalled USD107 billion as of December 31, up 28% annually.
easyJet was the second-lowest constituent, down 3.0% despite a relatively chipper trading statement.
The Luton-based airline expects a headline pretax loss of GBP61 million, an improvement on the prior year's GBP65 million. Revenue rose 13% on-year to GBP2.04 billion from GBP1.80 billion.
For financial 2025 its outlook is positive, "consistent" with its company-compiled consensus which forecasts headline pretax profit of GBP709 million for financial 2025, up 16% on-year.
Among small-caps, Engage XR rose 42%.
The virtual communications company promised to "today unveil its comprehensive education offering for the first time at the world-leading EdTech conference, Bett 2025, in London".
The education package allows educators to "utilise a comprehensive suite of teaching software to enable them to create and share content with pupils", the firm said.
In European equities on Wednesday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was down 0.7%.
The pound was quoted at USD1.2324 early on Wednesday in London, up compared to USD1.2319 at the equities close on Tuesday. The euro stood at USD1.0419, flat against USD1.0417. Against the yen, the dollar was trading higher at JPY155.65 compared to JPY155.43.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 1.6%. In China, the Shanghai Composite was down 0.9%, while the Hang Seng index in Hong Kong was down 1.6%. The S&P/ASX 200 in Sydney closed up 0.3%.
China on Wednesday vowed to defend its "national interests" after Trump said that a 10% duty on Chinese imports could come as soon as February 1.
"We have always believed that there are no winners in a trade war or a tariff war," foreign ministry spokeswoman Mao Ning said, adding China was "firmly committed to safeguarding national interests".
"Although Chinese stocks fell back after POTUS pledged to hit China with an extra 10% tariff on goods imported into the US, there are hopes a tit-for-tat retaliation won’t materialise...The delay in imposing blanket tariffs on Day 1 of the new administration has led to hopes that there is room for negotiations," Streeter commented.
Further, China insisted it had "never interfered" in the Panama Canal, after US President Donald Trump threatened to seize the waterway and complained Beijing was effectively "operating" it.
"China does not participate in the management and operation of the canal and has never interfered in the affairs of the canal," foreign ministry spokeswoman Mao Ning said.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.2%, the S&P 500 up 0.9% and the Nasdaq Composite up 0.6%.
Brent oil was quoted lower at USD78.41 a barrel early in London on Wednesday from USD79.51 late Tuesday.
Gold was quoted higher at USD2,752.37 an ounce against USD2,740.35 on Tuesday.
Still to come on Wednesday's economic calendar, Ireland releases wholesale price data and the US Redbook index read is due.
By Emma Curzon, Alliance News reporter
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