UK BUSINESS: FTSE 100 hits new high after Christmas break

The FTSE 100 hit a new high for the year as shares posted solid gains in the first day of trading since the Christmas break.

The FTSE rose 0.5% to 7,102 points - above the close of 7,097.5 points on 10 October.

The blue-chip index is also close to the record close of 7,103.98 points reached on 27 April 2015.

Miners led the blue-chip risers, with BHP Billiton up 4.2% at £13.11 and Anglo American 3.9% higher at £11.69.

British Airways owner IAG was the biggest faller, down 2.3% to 446.6p, while easyJet fell 1.6% to £10.18.

On the FTSE 250, housebuilder Bovis Homes fell 4.8% to 815p after warning on profits.

It blamed "slower-than-expected build production" in December for a slowdown in sales, with completions on around 180 homes set to be delayed into early 2017.

Bovis now expected to complete between 3,950 and 4,000 homes this year, which will leave annual profits at between £160m and £170m.

Shares in Sports Direct rose 2.9% to 280.4p after it announced a £112m sale of its Dunlop brand to Japan's Sumitomo Rubber Industries.

The retailer said it did not have the capacity to "develop and manage international brands simultaneously" and needed to prioritise its core UK businesses and relationships with third party brands.

Retail analyst Nick Bubb said the statement could raise investors' eyebrows. Sports Direct shares have fallen more than 50% this year.

Boohoo.com jumped 3.2% to 136.5p after revealing a $20m (£16m) deal for failed US fashion retailer Nasty Gal.

The online retailer wants the brand and customer databases of Nasty Gal, which filed for bankruptcy in November.

The move follows Boohoo's recent acquisition of rival site Pretty Little Thing for £3.3m and higher profit guidance following robust Black Friday trading.

Elsewhere, the New York Stock Exchange had its lightest full day of trading since October 2015 on Tuesday.

The Dow rose 11 points to 19,945, the S&P 500 index gained 5 points to 2,268.8, while the Nasdaq rose almost 25 points to a record high of 5,487.4.

On the currency markets, the pound fell 0.25% against the dollar to $1.2239, and was flat against the euro at €1.1730.