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FTSE rises after surge in factory output buoys London trading sentiment

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The London markets climbed higher after record UK factory activity helped drive positivity around the country’s economic revival.

Traders welcomed new data from the CBI which showed that output grew at the fastest pace since survey records began in 1975 in the three months to June.

A rebound by property stocks and the oil majors also helped the leading indices close the day higher.

The FTSE 100 closed 27.72 points higher, or 0.39%, at 7,090.01 on Tuesday.

Hugh Shields, financial trader at Spreadex, said: “It has been a decent day for the FTSE, up off the back of record growth in UK factory output.

“With the Bank of England’s meeting minutes to come out later this week too, there is a chance that this strong performance could get even better.”

Elsewhere in Europe, the main markets ticked marginally higher but largely treaded water throughout a cautious session.

The German Dax increased by 0.29% and the French Cac moved 0.28% higher.

Across the Atlantic, the Dow Jones also edged higher as Monday’s pre-Fed meeting exuberance calmed slightly.

Chris Beauchamp, chief market analyst at IG, added: “Equity markets continue to make gains while in FX markets the likes of the euro, sterling and the Loonie are making some cautious headway against the greenback, which has found itself becalmed following last week’s bounce.”

The pound had its second day’s rise against the US dollar as Government borrowing eased back in May following the further reopening of parts of the economy.

The pound was 0.09% higher versus the US dollar at 1.391 and increased by 0.08% against the euro to 1.168.

In company news, British Land and Land Securities rose to the top of the FTSE 100 after they both received upgrades from JP Morgan.

The broker said its guidance was raised on expectations that footfall should recover as the UK economy reopens further in the next few months, while investors also welcomed reports that British Land could sell its stake in Paddington Central.

British Land saw its shares rise 23.3p to 516.8p, while Land Securities was up 21.6p to 699.2p.

Builders’ merchant Travis Perkins soared after it said its 2021 profits are set to be “materially ahead of expectations”.

Shares were 108.5p higher at 1,725p after it said it expects to deliver adjusted operating profits of “at least £300 million” for its continuing business in 2021.

Victoria Plumbing closed 68p higher at 330p as it struck a positive note with investors on its first day trading on the AIM index.

The price of oil edged marginally lower later in the session after its recent surge cooled.

Brent crude decreased by 0.15% to 74.79 dollars per barrel.

The biggest risers on the FTSE 100 were British Land, up 23.3p to 516.8p, Land Securities, up 21.6p to 699.2p, Shell B, up 37.8p to 1,400.2p, Melrose Industries, up 4p to 162.4p, and Flutter Entertainment, up 325p to 13,955p.

The biggest fallers on the FTSE 100 were Hargreaves Lansdown, down 43p to 1,588p, DS Smith, down 7.4p to 425p, IAG, down 3.2p to 194.6p, Prudential, down 21.5p to 1,435p, and GlaxoSmithKline, down 20.2p to 1,394.8p.

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