The Market Close - Conservative manifesto walks back energy price cap pledge - Collins Sarri Statham Investments

Today's Closing Update

U.S. shares rose, rebounding from the previous session’s brutal selloff as positive data offered some reason for optimism and technology shares lifted the technology index.

UK and European shares slid to two-week lows as mounting political uncertainty in the U.S. exacerbated concerns among investors as to whether President Donald Trump would be able to deliver on key pro-growth policies.

The Conservative party released its manifesto ahead of the UK general election this June, which contained several energy-related policies including a safeguard tariff for retail customers and a review of company share buybacks. After pledging to introduce a price cap on the standard variable tariffs used by 17 million UK households, the Conservative’s manifesto pledged to commission an “independent review” into the cost of energy to advise on how to get energy costs “as low as possible”, having previously said a cap of up to £100 per year per customer could be introduced.

Shire shares rallied as the biopharmaceutical group said phase 3 results for its lanadelumab treatment for hereditary angioedema showed a significant reduction in the monthly attack rate. The company said it will submit a biologics license application for evaluation by the US Food and Drug Administration late this year or early 2018 after the trial showed the drug reduced the monthly attack rate by 87% versus a placebo over 26 weeks in patients 12 years of age or older with hereditary angioedema.

Deputy Attorney General Rod Rosenstein announced Wednesday the appointment of former FBI Director Robert Mueller to serve as Special Counsel to oversee an investigation of Russian meddling in last year’s presidential election. Rosenstein said in a statement he determined it is in the public interest to appoint a special counsel to assume responsibility for the investigation. “My decision is not a finding that crimes have been committed or that any prosecution is warranted,” Rosenstein said. “I have made no such determination.”

3i has declared a bumper dividend after its total return rocketed up 93% to £1.59bn thanks to valuation gains on its portfolio and a big benefit from the weakness of the pound.

Greggs updated the market on its trading, ahead of its annual general meeting on Friday, reporting that total sales were up 7.5% in first 19 weeks of 2017, compared to 5.7% growth in the same period last year. The firm said company-managed shop like-for-like sales in the period were up 3.6%, slightly down on the 3.7% seen a year ago.

Warmer weather helped retail sales to rise by more than expected last month, according to official data. Sales volumes jumped 2.3% in April from the month before, the Office for National Statistics (ONS) said, and were 4% higher than a year earlier. April’s rebound contrasted with March, when sales saw the biggest fall in seven years. “Anecdotal evidence from retailers suggests that good weather contributed to growth,” the ONS said. The stronger-than-expected rise in sales pushed the value of the pound above $1.30 to its highest level since September last year.

JRP Group updated the market on its trading for the quarter to 31 March, with overall total new business sales of £436m growing by 13%, driven by a large increase in defined benefit de-risking (DB) volumes, partly offset by more normal levels of mortgage advances.

JD Sports Fashion announced that its acquisition of Go Outdoors Topco had been given unconditional approval by the Competition and Markets Authority, and that the CMA’s investigation was now complete. The firm described Go Outdoors as a “nationwide omnichannel retailer” catering for outdoor enthusiasts and specialists, with 58 stores across the UK at acquisition – the majority of which are situated in out of town retail parks.

Oil Prices retraced losses after a deepening political crisis in Washington accelerated an early morning decline in prices.

Gold eased as a bounce in the dollar prompted some buyers to cash in gains after its biggest one-day rally in nearly a year.

Market Close

Market	Index	Change	% Change
UK 100	7,436.4	-67.1	-0.9%
UK 250	19,691.6	-82.0	-0.4%
GER 30	12,590.0	-41.6	-0.3%
FRA 40	5,287.1	-30.8	-0.6%
U.S. 30	20,640.47	+33.54	+0.2%
U.S. 500	2,362.4	+5.4	+0.2%
OIL (BRENT)	52.47	+0.26	+0.5%
GOLD	1,254.03	-7.33	-0.6%

UK Risers & Fallers

Company	Price	Change	% Change
Berendsen	1045.5	+182.5	+21.1%
Burberry Group	1718	+77	+4.7%
Centrica	200.9	+7.5	+3.9%
Mitchells and Butlers	240.85	-17	-6.6%
RDS B	2161	-89.5	-4.0%
RDS A	2108.5	-76.5	-3.5%

Reported Economic Data

Time/Date	Previous	Forecast	Outcome
8:30am: U.K. Retail Sales m/m	1.8%	1.2%	2.3%
12:30pm: U.S. Unemployment Claims	236k	240k	232k
5:00pm: ECB President Draghi Speaks	–	–	–