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“The latest indication from the US Federal Reserve that it has no intention of lifting interest rates anytime soon helped set the FTSE 100 on course for a third straight day of gains on Thursday,” says AJ Bell Financial Analyst Danni Hewson.
“Also helping the index were gains for heavyweight miner Anglo American as it announced plans to demerge its thermal coal business in South Africa.
“Mining stocks are on a transition from being contributors to climate change to playing a critical role in sourcing the metals and other materials required for renewables and electric vehicle infrastructure as the world looks to move away from fossil fuels.
“Reopening optimism continues to push the more domestic-focused FTSE 250 to fresh record highs despite concerns over the vaccine rollout and possible side-effects with the AstraZeneca jab.”
ASOS
“Online fashion business ASOS has added lots of new customers in the pandemic as shoppers starved of the ability to buy clothes on the high street have turned to the web instead.
“This has been reinforced by the recent purchase of Topshop and other brands owned by failed retail empire Arcadia.
“The deal didn’t include the physical shops themselves but there is speculation Topshop’s flagship store on Oxford Street might be reopened – which would give ASOS a physical space to showcase its brands.
“Fears the company would suffer because its core youthful demographic was disproportionately hit from a financial point of view by Covid-19 have so far proved unfounded – even if the company itself is cautious on that point going forward.
“And it doesn’t seem like being unable to go out and socialise has stopped people from wanting new clothes – after all taking the bins out or a trip to the supermarket have become the equivalent of going out to a club or pub and people have still wanted new joggers and sweatshirts to hang out at home.
“Reopening should offer some benefit as people refresh their wardrobes to get out and do stuff again but will also see some demand filter back to shops.
“Though like other trends accelerated by the pandemic, a greater proportion of people buying clothes online is something which looks to be here to stay.
“One helpful trend for the business that may evaporate as we emerge from lockdown is a lower level of returns – an expensive and fiddly part of the operation for ASOS – as people have been reluctant to head to the post office to send back those unwanted jeans.”
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