FTSE LIVE: London stocks boosted after Wall Street hits record highs; Next and Barclays updates

10.10: The FTSE 100 has bounced 42.7 points to 6,817.4 after fresh markets records were set on Wall Street overnight.
Investor confidence has been strengthened by hopes that the US Federal Reserve will maintain its current level of stimulus at a meeting due to conclude later today.
And for now at least, the Footsie appears to be closing in on its all-time record of 6.933.9 achieved in 1999.

Market watch: Dow Jones and S&P 500 ended at all-time highs yesterday on hopes the US Fed will keep pumping out stimulus money

The biggest rise in the FTSE 100 Index came from fashion retailer Next after it lifted its profits forecast for the year to January to between £650million and £680million.

It has been encouraged by a better-than-expected 4.3 per cent rise in third quarter sales and better visibility on full-year costs. Shares responded with a rise of 375p to 5580p, up 7 per cent.
Barclays also did well, despite a 26 per cent fall in third quarter profits and a warning to shareholders that it had been drawn into a worldwide investigation into alleged manipulation of currency rates.
Shares were up 9.7p to 275.8p as Credit Suisse said the quarterly performance was 2 per cent ahead of City estimates.

 

Outside the top flight, pawnbroker Albemarle & Bond jumped 13 per cent - up 5.5p to 48p - after it said lenders had agreed to put off a convenant test until February while it strives to resolve financing issues.
City commentators are mulling what the US Fed might announce after its latest two-day meeting wraps up this evening, and its potential impact on market sentiment.
Mike van Dulken, head of research at Accendo Markets, said: 'We, like the markets, expect the Fed's message to be one of taper delay with data still too soft and government shutdown impacting the fourth quarter.
'We are, however, prepared for some form of expectations management, especially with US bourses trading all-time highs. Maybe suggestions of first quarter 2014, reining in some of the recent market exuberance based on hopes (similar to ours) of a delay until the second quarter?'
Regarding FTSE 100 trends, he added: 'Cautious optimism has proved fruitful, with the test of 6800 and break above the intersecting trendline from June lows opening up the possibility of upside to May highs of 6875.'
Jim Reid of Deutsche Bank said: 'We continue to think the Fed are trapped to a large degree by the liquidity they've provided financial markets over recent years which could destabilise assets if they reversed course without a strong economic recovery.
'Indeed the current data uncertainties is probably the biggest reason for holding fire at the moment, especially so soon after the shutdown. Indeed our view is that the Fed may have to adjust their criteria for tapering if they want to make regular cuts to QE in 2014. We're not sure how employment is going to suddenly pick up at this relatively mature stage of the cycle.  
'However when all said and done, the Fed do seem to want to taper and although we think they won't until well into next year, we can't help but think that the Fed are currently unpredictable enough at the moment that we need to be vigilant tonight and indeed in December.'

 

8.35: The FTSE 100 has opened up 16.4 points at 6,791.1, helped by record closing highs on Wall Street on expectations the US Federal Reserve will delay trimming its stimulus programme.
The Dow Jones and S&P 500 ended at all-time highs yesterday after fresh economic data supported the view that the Fed will keep its bond -buying programme intact when it makes today's policy announcement.
The recent US government shutdown and stand-off over raising the debt ceiling are thought to have postponed reductions to massive $85billion-a-month stimulus injections which have helped to underpin equity markets.
'US equity markets appear to be behaving as if quantitative easing is pretty much here to stay after yesterday’s US economic data pointed to an economy that appears to be dropping down a gear or two into year end,' said Michael Hewson of CMC Markets.
'US consumer confidence dropped sharply in October from 80.2 in September to 71.2, as a result of the government shutdown.
'Given that retail sales were slightly disappointing on the headline number for September and that today’s ADP October jobs data could well also show similar weakness investors are surmising not unreasonably that we could see the Federal Open Markets Committee revise down its economic forecasts for the US economy over the coming months at the end of tonight’s Fed meeting.'
Hewson said the S&P 500 was up over 27 per cent this year, which considering the US economy was ambling along at an annualised growth rate of around 2 per cent indicated just how much easy monetary policy has turbo-charged stock markets.

The FTSE 100 is still below its record high of 6.933.87, which was hit in December 1999. Nevertheless, it put on a further 48.9 points to 6,774.7 yesterday, the highest close since May 22.
Stocks trading without the attraction of their latest dividend - Fresnillo and ITV - are expected to knock 0.25 points off the index in today's session.

 

Stocks to watch today include

J SAINSBURY, TESCO: Sainsbury will take its spat over price comparisons with Tesco to the High Court, challenging a ruling by the advertising watchdog in favour of its rival.
ROYAL MAIL:  The postal network is heading for another shutdown on November 4 after 5,500 staff in the Post Office said that they were to follow 115,000 of their former co-workers at the Royal Mail out on strike, the media reported.
ASTRAZENECA: The firm said on it was advancing its experimental biotech drug benralizumab into final-stage clinical trials for severe uncontrolled asthma.
NEXT: The clothing retailer bumped up its profit guidance for the current year after posting third-quarter sales that were a touch above expectations.
BARCLAYS: The bank's profits fell 26 per cent in the latest quarter from a year ago after earnings at its investment bank more than halved due to a slowdown in capital markets.
STANDARD LIFE: The insurer posted a one fifth increase in sales of long-term savings products during the first three quarters of 2013 as it flagged an expected boost from the introduction of automatic enrolment of UK employees to company pension schemes.
PEARSON: The publisher reiterated its full-year guidance after reporting nine month underlying sales were up 2 per cent due to a strong performance in its professional and emerging markets divisions.
PETROFAC: The firm said it had been awarded a $650million engineering, procurement and construction project in Algeria.
VODAFONE: Telecom New Zealand and Vodafone have picked up the majority of management rights to the country's 700 megahertz spectrum as competition heats up to bring high-speed 4G broadband services to users in rural areas.