The UK’s benchmark share index showed no sign of falling back after yet another day of gains.
The FTSE 100 was trading flat on Friday at 6,041 after closing 20 points higher the day before, still revelling in the aftermath of the US budget deal.
US lawmakers passed a deal on New Year’s Day to stall a series of automatic spending cuts and tax hikes worth over US$600bn that some analysts said would push the US economy over the edge of what has been dubbed the ‘fiscal cliff’.
The decision has bought Barack Obama and co some time – two months to be precise – to find a longer-term solution to the budget crisis.
The Federal Reserve’s December minutes showed some voters from the Federal Open Market Committee (FOMC) are becoming increasingly concerned about the risks of more asset purchases.
The Fed looks set to continue an open-ended economic stimulus programme, but some appear to be in favour of putting an end to quantitative easing (QE).
Mike van Dulken, Head of Research at Accendo Markets, said: “Even a reduction in risk appetite after the Fed’s December FOMC minutes suggested members wanting to slow/stop quantitative easing by the end of 2013 has not seen the 6,000 or even the recent lows of 6,020 tested seriously.
“While the index bias appears to remain to the upside, we are still nervous about the highs around 6100 being another bugbear hurdle,” he added.
“6,000 took us long enough to get though in 2012, and only arrived as a New Year present. Will its cousin prove equally as difficult?”
The spotlight will once again be on America today as it unveils the latest non-farm payroll numbers.
Analysts predict 150,000 jobs will have been added in December, with the unemployment rate sticking at 7.7%.
Oil giant BP (LON:BP.) led the way, up 1.5% after receiving good news regarding the Deepwater Horizon oil spill.
Rig owner Transocean has paid US$1.4bn for its part in the disaster, showing encouraging signs that BP will be able to reach a settlement with the US government ahead of its trial in February.
Fresnillo (LON:FRES) found itself at the foot of the leader board in early play, tumbling 5.8% on the back of a downgrade from UBS.
The Mexican silver miner’s shares have outstripped its peers’, according to UBS, which cut the stock to ‘neutral’.
The shares have risen 7% since September 10, the broker points out, while the silver price has fallen 9%.
Fellow miner Randgold Resources (LON:RRS) joined it at the bottom, down 3.9%, along with Polymetal International (LON:POLY), down 3.9%, and High Street bellwether Marks & Spencer (LON:MKS), which lost 3.4%.
As for the juniors, power companies charged up the charts.
South African power company IPSA Group (LON:IPSA) powered up more than 6.7%, with Wasabi Energy (LON:WAS) up almost 10% just a couple of days after paying around US$5.6mln for the first instalment to buy over half of Shanghai Shenghe New Energy Resources Science & Technology (SSNE).
The specialist power company, whose Kalina Cycle technology recycles heat from industrial processes to generate electricity, put up the cash on behalf of its new subsidiary Wasabi New Energy Asia (WNEA).
WNEA is being set up to take advantage of the Asian power market and to advance the use of the Kalina Cycle and SSNE’s patented Enhanced Rankine Cycle power technology throughout in Asia.
The big story among the small caps however was Eurasia Mining (LON:EUA).
The stock soared 43% higher after it extended its exploration licence at Monchetundra in the Kola Peninsula in Russia for another year.
It will mean Eurasia can keep exploring at the site and it aims to apply for a production licence by the end of 2013.
Gem Biofuels (LON:GBF) boomed up 131% even though a statement told investors it knew no reason for the spike.
Ortac Resources (LON:OTC) also gained, up just under 9%, while TomCo Energy (LON:TOM) jumped 6%.
Meanwhile, Plant Impact (LON:PIM) shares jumped over 12% today. Chief executive John Brubaker has bought company shares worth almost £10,000 over two transactions, the firm said.
He bought 44,000 shares at 13.75 pence each for £6,050 on January 2 and the next day bought 27,000 shares at 13.40p for £3,618.
The total cost of the transactions was £9,668 and Brubaker now holds 1% of the crop technology specialist.
Shares rose 12.15% at 15 pence each.
Anglesey Mining (LON:AYM) lost 4.2% on the last day of the trading week, while Vane Minerals (LON:VML) dropped 3.3%.
Shale gas company IGas Energy (LON:IGAS) continued its decline, down another 4% today.
Ariana Resources (LON:AAU) shed more than 3%. The gold company recently raised £580,000 before costs through the issue of over 52mln shares, some of which were snapped by its joint venture partner on the Red Rabbit gold project, Proccea Construction.
Magnolia Petroleum (LON:MAGP) dipped 7% despite strengthening its foothold in the Bakken/Three Forks Sanish formation in Montana with the acquisition of more land.
Caledonia Mining (LON:CMCL, TSE:CAL) meanwhile shed just under 1% on the day it revealed Robert Babensee, a director of the company, had exercised his options over 200,000 shares at 7 cents each.