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(Alliance News) - Stock prices in London opened mostly higher on Friday, amid reports that UK Chancellor Rachel Reeves plans to soften the government's proposed tax regime on 'non-doms'.
The chancellor said she would be tabling an amendment to the plans for taxing non-domiciled residents after "listening to the concerns" they raised. The changes will increase the temporary repatriation facility, which allows non-doms to bring money into the UK without paying significant taxes on it.
The government said the finance bill would bring forward the final policy but that the amendment "doesn't change the overall approach, which is that we are replacing this outdated regime".
Consumer confidence in the UK has meanwhile suffered a steep drop amid signs that households see "dark days ahead" for the economy, according to GfK's Consumer Confidence Index survey.
Elsewhere, as Swissquote's Ipek Ozkardeskaya noted, "US President Donald Trump said – in his virtual speech in Davos – that he would push for further interest rate cuts and ask Opec to lower crude prices. He also brought the tariff talk on the table, saying that the EU countries must consider bringing some production to the US to avoid penalties...Except for the aim of lowering energy prices, most of Trump's wishes are inflation-boosters.
"PS: interfering with a central bank's independence has never been a good idea. If the monetary policy starts serving the government goals – so explicitly – you end up like Turkey – roasted."
The FTSE 100 index opened up 3.38 points at 8,568.58. The FTSE 250 was up 144.12 points, 0.7%, at 20,664.51, and the AIM All-Share was down 1.34 points, 0.2%, at 719.52.
The Cboe UK 100 was flat at 859.25, the Cboe UK 250 was up 0.7% at 18,045.97, and the Cboe Small Companies was down 0.1% at 16,020.25.
Antofagasta led the FTSE 100, rising 4.4% after HSBC maintained a 'reduce' rating but rose the price target to 1,400 pence from 1,300p.
Retailer Marks & Spencer led the laggers, down 1.3%.
Burberry far outstripped fellow FTSE 250 constituents, surging up 14%.
The luxury retailer reported a 7% reduction in retail revenue for its third quarter, but said it expects second-half results to "broadly offset the first-half adjusted operating loss, notwithstanding the uncertain macroeconomic environment". It also proclaimed confidence in its long-term plans to "improve our performance".
Harbour Energy lost 3.0% after Goldman maintained a 'sell' rating and cut its price target to 245p from 260p.
Among smaller caps, TheWorks jumped 5.3%.
The retailer reported a narrowed pretax loss of GBP6.9 million for its first half year, while revenue increased 1.3% to GBP124.2 million.
Also, it pronounced itself on track to deliver its full-year market consensus estimate of GBP8.5 million in adjusted earnings before interest, tax, depreciation and amortisation.
In European equities on Friday, the CAC 40 in Paris was up 0.8%, while the DAX 40 in Frankfurt was up 0.3%.
The pound was quoted at USD1.2399 early on Friday in London, higher compared to USD1.2343 at the equities close on Thursday. The euro stood at USD1.0487, higher against USD1.0409. Against the yen, the dollar was trading higher at JPY155.27 compared to JPY156.02.
In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.1%. In China, the Shanghai Composite was up 0.7%, while the Hang Seng index in Hong Kong was up 1.7%. The S&P/ASX 200 in Sydney closed up 0.4%.
In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.9%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.2%.
"Of course, though, the tariff issue continues to cloud the outlook, with certainty on President Trump's trade plans still sorely lacking," said Pepperstone's Michael Brown. "For the time being, participants seem able to shrug this uncertainty off relatively well, with consensus rapidly forming that – 1) tariffs are little more than a negotiating tool, and 2) said tariffs are unlikely to be as drastic as those touted on the campaign trail last year.
"Were those two assumptions to be challenged, a significant adverse reaction in risk assets is likely on the cards; unless, and until, then though, the path of least resistance should continue to lead to the upside."
Brent oil was quoted lower at USD77.55 a barrel early in London on Friday from USD78.14 late Thursday.
Gold was quoted higher at USD2,772.12 an ounce against USD2,756.70.
Still to come on Friday's economic calendar, PMI figures are still due from several regions including the UK, US and the eurozone.
"The latest 'flash' PMI figures from pretty much every DM economy are due today, though the data is likely to reiterate what we already know – that the eurozone economy is stagnating, the UK is mired in stagflation, and that the US economy continues to vastly outperform its peers," Pepperstone commented.
By Emma Curzon, Alliance News reporter
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