The blue chip benchmark finished 0.6% higher at 7,384.18 points on Thursday, a 20-month high, amid relief that Chinese property developer Evergrande has avoided defaulting on its debts.

Disappointing UK GDP data, combined with last week’s surprise decision by the Bank of England to delay a rate rise, drove sterling lower and the international FTSE 100 higher, as a weak pound means constituents’ overseas earnings increase in value.

Retailers were under pressure following several disappointing updates that cast gloom on the sector.

Luxury brand Burberry (BRBY) fell 5.4% to £18.62 after it said sales in Europe and Japan remained under pressure from reduced tourist levels, even as it exceeded quarterly profit expectations.

Adding to sector worries was discount retailer B&M (BME), which shed 5.6% to trade at 607.8p after posting lower first half core earnings.

Shares in Auto Trader (AUTO) topped the FTSE 100, accelerating more than 14% higher to 708p as the online car marketplace posted record first half revenue and profit amid surging demand for used vehicles.

BATTERIES NOT INCLUDED

Chemicals company Johnson Matthey (JMAT) slumped 19% to £22.36 after the group revealed plans to exit its battery materials business and warned on profits. The company said it believes that potential returns from its battery business don’t justify further investment and warned it has also been hampered by supply chain difficulties that have hit the automotive industry.

Chief executive Robert MacLeod also announced that he will leave the company.

Also hurt in the automotive space was TI Fluid Systems (TIF), which fell 10.5% to 245p after major shareholder Omega sold 40 million shares at 250p.

Retailer WH Smith (SMWH) reduced annual losses as cost cuts offset a slide in revenue. The narrower loss reflected a recovery in passenger numbers and tight cost control.

For the year ended 31 August, pre-tax losses narrowed to £116 million from £280 million, while revenue declined 13% to £886 million.

The company has decided not to pay a dividend. On a more encouraging note management is optimistic that it would be able to achieve 2019 sales levels in the current financial year. The shares drifted 0.5% lower to £16.07.

ELSEWHERE ON THE MARKET

Insurer Aviva (AV) edged 0.7% higher to 408.3p after the company reported a ‘strong’ performance in the first nine months of the year, amid record inflows in savings & retirement business and ‘excellent’ growth in general insurance.

Defence giant BAE Systems (BA) added 1p to finish at 571p on news it has agreed to acquire Bohemia Interactive Simulations, a developer of advanced military simulation and training software.

Shares in defence and cyber security company QinetiQ (QQ.) dropped 1% to 267.2p after first half profit was impacted by a £14.5 million writedown, in line with prior guidance of ‘less than’ £15 million.

Support vessels provider Gulf Marine Services (GMS) added 5.1% to finish at 6.2p after winning two contract extensions, on improved dayrates, for a K and S Class vessel.

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Issue Date: 11 Nov 2021