FTSE 100 jumps again after Wall Street raced to record highs and Rishi Sunak announces £4 billion job protection plan

The FTSE 100 Index was set to jump to its highest point since June today after Wall Street roared to new records last night and Rishi Sunak prepared to unveil a £4.3 billion plan to save jobs.

Shares in Asia this morning gained on the back of the US market’s strong performance and futures markets suggested New York was going to open up even higher this afternoon.

US shares were buoyed by factors including Donald Trump’s agreement to start the mechanics of transferring power to Joe Biden.

The President’s reluctance to admit defeat has been spooking markets, particularly around concerns that without an orderly transfer, central government funds for Covid aid would expire at the end of the year.

Traders also liked the appointment of Janet Yellen, former Federal Reserve chairman, to become Treasury secretary.

Her criticism of Trump’s belligerent policies towards China was seen as another reason to hope global trade relations could improve in the coming years.

That helped the Dow Jones Industrial Average power 30,000 for the first time.

In the UK, the FTSE 100 was set to rise 23.2 to 6444.9 according to trading on the IG Index platform - a gain of 0.4%.

Gold was likely to fall for a second day as traders’ appetite for riskier assets improved. That included a move into emerging markets.

Bitcoin also came within a whisker of new record highs as it broke through the $19,000 mark. Profit taking set in this morning, although IG Index reported 81% of traders were betting on it rising again beyond the current $18,901.

Chancellor Rishi Sunak will deliver his one-year comprehensive spending review later with hopes rising that he will not signal tax rises until after the coronavirus crisis ends.

With the Office for Budget Responsibility likely to predict a 10% crash in GDP, he will instead be setting out plans to spend further on saving jobs.

Stemming the surge of unemployment was his “number one priority”, he is expected to say.

For a guide to other CSR measures see here.

A big factor in the FTSE 100’s rise will be shares in HSBC, whose Asian listed stock was up 8% this morning, probably reflecting relief at the prospect of better US-China relations.

BP and Shell could be set for gains thanks to a rise in the oil price, which is getting closer to $49 for a barrel of crude. Yesterday it gained nearly 4% and it is rising again this morning.

The Financial Times reported that UK companies were making last minute changes to adapt to Brexit.

Segro, the warehouse owner which has boomed thanks to the surge in online shopping, split itself into a dual-listing structure with shares now in Paris as well as London.

Goldman Sachs announced it was setting up a base in Paris for Sigma X, its private share trading marketplace.

As trade negotiators at the UK and EU remain locked in trade talks over fish and state aid rules, financial arrangements are to be decided separately between regulators.

They are yet to thrash out the details of future trading relationships which will depend upon so-called “equivalence” rules dictating what features products must have in common to be allowed to trade cross-border.

There has been good news this week in that European regulators have agreed a deal allowing old derivatives contracts to transfer between London and the EU.

It is likely other banks and plcs will be following Goldman and Segro’s path in adjusting their business models in the coming weeks.

In economics news, the US has a busy day, with data expected to show a fall in demand for durable goods, a second reading of the 33.1% rebound in the economy for the third quarter which could revise it up to 33.2% and unemployment claims data likely also to show an improvement.

US personal expenditure, however, will be lagging those improving signs, with spending likely to fall from 1.4% growth to 0.4% as personal income slides to zero growth against 0.9% before.

Inflation is set to fall from 1.5% in September to 1.4% in October, CMC Markets reported.

Finally, tonight will bring minutes from the Fed’s last meeting at which it left interest rates on hold just after the Presidential election. As ever, the minutes will give the public insights into what lies behind its thinking.

The Dax 30 Index of German shares was set to open 7 points up at 13285, the Cac 40 in France should be up 9 at 5567, according to CMC Markets trading data.

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