Proactive Investors -
- FTSE 100 up 40 points to 8,119
- Anglo American (JO:AGLJ) snubs BHP bid
- Darktrace (LON:DARK) to be bought by Thoma Bravo
Government sells more NatWest shares
NatWest revealed the government's stake in it has dropped below 28% as part of the ongoing sale strategy which was launched in August 2021.
Britain's Treasury now holds a 27.93% stake in the lender, down from 28.9%.
It comes around sixteen years after the government was forced to rescue the group formerly known as Royal Bank of Scotland (LON:NWG) during the 2008 financial crisis and to build an 84% stake.
Plans for a public sale of the government's NatWest shares are scheduled for this summer.
Chief executive Paul Thwaite said:“Returning NatWest Group to private ownership is a shared ambition and one that we believe is in the best interests of the bank and all our shareholders.”
Trump plans to take tighter control of interest rate decisions
Donald Trump and his Republican allies have been developing plans to mute the Federal Reserve's impact on interest rate setting and instead give themselves more control over the decision, reports revealed.
Supporters of the former president and likely Republican nominee for the upcoming election drafted a document which outlined how Trump should interact with the central bank should he assume power.
Recommendations include putting the Fed's decisions under review by the White House and asking its chair to discuss with interest rate policy with the president before enacting it.
Trump is believed to be frustrated with the current policy of the Fed and is said to have complained to Fed chair Jerome Powell about rates being kept at 23-year highs for an extended period.
Jerome Powell was chosen as the Federal Reserve's chief by Trump back when he was president in 2017.
FTSE 100's strong performance to continue, says analyst
London's top stocks are continuing to have one of their best weeks in recent times.
The FTSE 100 is up around 26 points at 8,105, having broken intraday all-time highs and is on track to close at a record peak for the fourth time in five days.
Much of today's gains have been helped by a 5% jump in NatWest shares after the group maintained its forecasts in its first quarter update.
Other risers include Pershing Square (NYSE:SQ), up 3.5%, Ashtead (LON:AHT), up 3%, and Hikma Pharma, up 2.5%.
While the FTSE 100 looks to close at a new high, analysts are confident there is scope for further upside.
Kathleen Brooks at XTB said: "There is a dual boom going on in the global economy right now: AI/ tech and commodities. The UK index may be light on tech, but it has a lot of exposure to miners and energy companies.
"Commodity prices are likely to remain elevated for some time. This could lead to more analyst earnings upgrades for the UK, and this may signal a continued strong flow of dividends in the future, which also makes the UK index attractive.
"This could be the beginning for the FTSE 100’s long-awaited comeback."
Oil prices rise as gas prices become volatile
Oil prices have lifted higher ahead of US inflation data at 1.30pm, while gas prices have suffered some volatility due to cold weather and supply disruptions.
Brent crude oil lifted around 0.1% to over US$89 a barrel, meaning it is up more than 2% this week.
Much of the oil price rises have stemmed from the growing conflict in the Middle East and cuts to supplies by the Opec cartel.
Oil prices along with rises in wages in the US have contributed to inflation keeping high in the States.
Should today's inflation reading come in hotter-than-expected, the markets could suffer on the prospect of higher interest rates for longer.
Across the pond, the benchmark contract for gas prices slipped around 0.4% before jumping 1.9% today.
Dutch front-month futures are now trading around €30 per megawatt hour, representing a nearly 5% jump in the last two days.