FTSE LIVE: Footsie heads towards 7300 after President Trump promises business 'something phenomenal in terms of tax' in the next three weeks   

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08:30: The Footsie has shot up in early deals, heading for the 7300 mark after President Donald Trump's promise last night of 'something phenomenal in terms of tax' in the next few weeks.

After struggling with the 7200 level for the last 3 weeks, the FTSE 100 smashed through that level just before the market closed yesterday.

In early deals the index has carried on where it left off and is currently up 44 points at 7,273.9.

Donald Trump last night promised to release a much-anticipated plan for tax cuts soon

Overnight on Wall Street all three major US stock indices closed at new highs, with the Dow Jones Industrial Average rising 0.6 per cent to end the day at 20,172.40. 

In Asia the Shanghai Composite rose 0.5 per cent to 3,198.956, while in Japan the Nikkei 225 gained 2.49 per cent.

Michael Hewson, analyst at CMC Markets, said: 'The move to new record highs in equity markets are symptomatic of a market craving a new stimulus. The risk is that as with most oases they turn out to be an illusion, and given the new President's propensity for melodrama the risk is that this could well be no different.

'It is hard to imagine that he will be able to promise anything tangible within a two to three week window, however whatever the realities investors appear happy to take him at his word, as US markets closed well above their previous peaks, while the US dollar index looks set to post its first positive week this year.' 

This morning sees UK manufacturing and industrial production readings released - both figures are forecast to see sharp falls month-on-month. 

COMPANY NEWS  

RECKITT: The firm has agreed to buy US infant formula maker Mead Johnson Nutrition for $16.6billion, its biggest deal ever and opening up a new market area for the British consumer goods company.

JUST EAT: The chief executive of Just Eat, the online food delivery company, is to quit due to 'urgent family matters', prompting the chairman to step into his role on a temporary basis, 

NATIONWIDE: Pretax profit for the first nine months of its financial year fell by 16 per cent year on year as increasing competition and low interest rates continued to pressure earnings.    

DATA: 

UK balance of trade at 9.30am

UK construction output at 9.30am

UK industrial production at 9.30am

UK manufacturing production at 9.30am