|
Investors around midday on Thursday celebrated a big number of earnings that were published in the morning, ahead of weekly US jobless data and an inflation print that is key for the Federal Reserve in its decision-making process regarding interest rates. The FTSE 100 index was up 48.10 points, 0.5%, at 9,185.04. The FTSE 250 was up 226.41 points, 1.0%, at 22,002.99, and the AIM All-Share was flat at 762.65. The Cboe UK 100 was 0.6% higher at 917.33, the Cboe UK 250 gained 1.2% at 19,321.38, and the Cboe Small Companies was down 0.1% at 17,429.23. ‘Stellar results from Microsoft and Meta have fired up investors, quickly shifting the focus from US interest rates potentially staying higher for longer, to an environment where big tech is ruling the roost again,’ said Russ Mould, investment director at AJ Bell. In European equities on Thursday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was up 0.1%. The pound was down at $1.3224 at midday on Thursday in London, compared to $1.3285 at the equities close on Wednesday. The euro stood at $1.1556, higher against $1.1479. Against the yen, the dollar was trading at JP¥149.94 compared to JP¥148.38. Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.3%, the S&P 500 index 1.0% higher, and the Nasdaq Composite up 1.4%. The yield on the 10-year US Treasury narrowed slightly to 4.36% from 4.37%. The yield on the 30-year slimmed to 4.89% from 4.91%. In London, Shell, one of the FTSE 100’s largest constituents, rose 1.3%. The oil major maintained the pace of its share buyback, and raised its dividend, as second quarter profit fell but still topped expectations. Adjusted earnings fell 32% to $4.26 billion in the second quarter of 2025 from $6.29 billion a year prior, ahead of Vara consensus of $3.74 billion. Attributable income declined 2.3% to $3.60 billion from $3.52 billion. Shell increased its half-year dividend by 4.1% to 71.6 US cents from 68.8 cents a year ago and announced a $3.5 billion share buyback, which Chief Executive Wael Sawan pointed out was the 15th consecutive quarter of at least $3 billion in buybacks. Also climbing on Thursday was Rolls-Royce, up 9.6%. The jet engine and power turbine maker raised its outlook for all of 2025, saying a strong first half showed ‘our multi-year transformation continues to deliver’, despite supply chain difficulties and trade tariffs. Pretax profit multiplied to £4.84 billion from £1.42 billion a year before. It benefited from a £679 million gain on the deconsolidation of Rolls-Royce SMR Ltd, the company’s small modular reactor business, which constructs mini nuclear reactors and has brought in outside investors. Underlying operating profit was £1.73 billion, up 51% from £1.15 billion. In response, Rolls-Royce raised its guidance for full-year underlying operating profit to between £3.1 billion and £3.2 billion. This will be up at least 24% from £2.5 billion in 2024. St James’s Place gained 7.0%. The wealth manager reported a ‘strong operating and financial performance’ in the first half of 2025 with funds under management hitting a new high. It reported IFRS pretax profit of £367.9 million in the six months to June 30, up 63% from £225.1 million a year ago. Basic earnings per share increased 73% to 52.0 pence from 30.1p with diluted EPS of 51.6p, up 73% from 29.9p. Total funds under management rose 9.1% to £198.5 billion from £181.9 billion with net inflows doubling to £3.8 billion from £1.9 billion. Gross inflows grew 23% to £10.5 billion from £8.5 billion. ‘With structural tailwinds like shifting demographics and rising demand for advice amid growing tax complexity, SJP looks well placed to capitalise,’ said Third Bridge analyst Max Harper. Anglo American was down 5.0% as it slashed its interim dividend as rough diamond business De Beers continued to underperform. For the first half of 2025, the diversified miner reported pretax profit from continuing operations of $1.46 billion, multiplied from $504 million a year earlier. But adjusted pretax profit, before special items, fell 33% to $1.55 billion from $2.33 billion. Anglo American cut its interim dividend to 7 US cents from 42 US cents, owing to negative earnings from discontinued operations and lack of contribution from De Beers. On the FTSE 250 index, Just Group jumped 68%. The provider of retirement income products said it has accepted a £2.4 billion takeover from Bermuda-based wealth management firm, Brookfield Wealth Solutions. Under the proposal, shareholders will receive 220p cash for each share held. The price represents a 75% premium to Just’s closing price of 126p on Wednesday. RHI Magnesita was the biggest faller on the FTSE 250 index, down 6.5%. On Wednesday, it said a ‘highly competitive’ pricing environment is anticipated to continue as it reported a profit dive amid lower revenue. Revenue in the first half of the year fell 3.0% to €1.68 billion from €1.73 billion, while pretax profit plunged all the way to €14 million from €143 million. On Thursday, RBC cut its price target to 3,000p from 3,200p and maintained a ’sector perform’ rating, while Jefferies cut its target to 2,885p from 3,280p and kept a ’hold’ rating. On the AIM market, Cambridge Cognition fell 24%. The brain health software said revenue was down 23% to £4.3 million in the first half of the year from £5.6 million. The adjusted earnings before interest, tax, depreciation and amortisation loss widened to £400,000 from £100,000, though new sales orders were up to £6.9 million from £3.3 million. The order book was 12% higher at the end of the period to £16.4 million from £14.6 million a year ago. ‘We are continuing to build the order book from the low point in September 2024. Our refreshed and expanded commercial team is now delivering tangible results and our focus is growing the order book to drive future revenue and cash generation,’ said Managing Director Rob Baker. Gold was quoted at $3,296.40 an ounce early Thursday, higher than $3,292.75 on Wednesday. Brent oil fell to $71.99 a barrel from $72.99. The unemployment rate in the eurozone remained flat in June, data published by Eurostat showed Thursday. The unemployment rate was 6.2% in June, the same as in May, which was revised down from 6.3%. It was lower than the rate of 6.4% in June 2024. UK house sales jumped by 13% month-on-month in June, according to HM Revenue & Customs figures. Across the UK, it estimated that 93,530 home sales took place during the month, which was 1% higher than in June 2024. The report said the numbers ‘reflect transactions recovering from the dip seen’ following the ending of the temporary stamp duty thresholds. Stamp duty applies in England and Northern Ireland. Still to come on Thursday are US weekly initial jobless claims, the Chicago PMI and personal consumption expenditures figures. There will also be consumer price index figures from Germany out shortly. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
