It's all change as a retail report from the CBI is now unsettling the market after its bright start, while miner Vedanta has attempted to squash takeover rumours.
High street sales grew unexpectedly this month, said the CBI, and shop prices rose at the sharpest rate in 10 years. Richard McGuire at RBC Capital Markets said: "[The survey] showed the volume of annual sales improving from +10 to +13 in contrast to market expectations of a modest pull back to +8. Expected sales for December, meanwhile, were seen very modestly softer at +11."
This put a damper on hopes of an interest rate cut by the Bank of England next week and took some of the shine off shares.
Meanwhile Vedanta is still trading 6% higher despite the company trying to pour cold water on talk of a possible £25 a share bid. "The company denies the takeover rumours and confirms they are not in talks with anyone," said a spokesman.
Any bidder would have to get the agreement of founder Anil Agarwal, who owns more than 50% of the company. And it does seem unlikely he would want to sell out at the moment when the prospects for mining groups are so strong.
