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Shares were trading higher on Thursday, ahead of a European Central Bank decision, while a US inflation reading will also be in focus, less than a week before an expected Federal Reserve rate cut. The FTSE 100 index rose 45.39 points, 0.5%, at 9,270.78. The FTSE 250 was up 99.22 points, 0.5%, at 21,633.32, and the AIM All-Share was up 2.62 points, 0.3%, at 764.63. The Cboe UK 100 was up 0.5% at 929.52, the Cboe UK 250 was also up 0.5%, sitting at 18,928.27, while Cboe Small Companies was 0.1% higher at 17,063.78. In Paris, the CAC 40 was up 0.9%. In Frankfurt, the DAX 40 was 0.2% higher. Despite recent political turmoil in France, barely a handful of Paris blue-chips traded in the red on Thursday afternoon, with LVMH the worst performer, down only 0.2%. Societe Generale was up 2.5% and has shot up almost 8% this week, despite the political uncertainty. The pound fell to $1.3508 on Thursday afternoon from $1.3548 at the time of the London equities close on Wednesday. The euro faded to $1.1685 from $1.1722. Against the yen, the buck surged to JP¥147.98 from JP¥147.35. The yield on the US 10-year Treasury was quoted at 4.05%, narrowing from 4.06% late Wednesday afternoon London time. The 30-year yield narrowed to 4.69% from 4.71%. The global economic calendar on Thursday has US inflation figures and weekly jobless claims data at 1330 BST, after the European Central Bank’s interest rate decision at 1315. Rostro analyst Joshua Mahony commented: ‘Policymakers are widely expected to keep rates unchanged, with markets increasingly convinced the easing cycle has run its course. Inflation remains largely at target, and economic indicators such as the manufacturing PMI have managed to make a significant recovery over the past year. ‘This highlights the potential desire for the ECB to hold back some ammunition, shifting the focus away from further stimulus and towards the resilience of the underlying economy. Traders will be closely following Lagarde‘s testimony for any signs that the rate cuts are behind us, while economic projections also tell a story around the direction of travel for the eurozone.’ In New York, the Dow Jones Industrial Average and S&P 500 are called to open 0.2% higher, and the Nasdaq Composite up 0.3%. According to consensus cited by FactSet, the US annual consumer price inflation rate is expected to have accelerated to 2.9% in August, from 2.7% in July. ‘We think the combination of a moderation in jobs growth and still-manageable inflation should keep the Fed on track to cut rates, with a 25-basis-point cut expected in September to be followed by three additional consecutive cuts of the same size by January 2026,’ UBS analyst Mark Haefele commented. ‘Against this backdrop, we maintain our positive view on quality bonds and continue to favour medium duration Treasuries as part of a well-diversified portfolio. Gold, already trading near record highs, should continue to perform as a portfolio diversifier and an effective hedge against both macroeconomic uncertainty and political risks. Falling rates should further support the rally in equities, with the S&P 500 expected to finish 2025 near 6,600 and reach 6,800 by end-June 2026.’ In New York, shares in buy now pay later service provider Klarna will remain in focus. The stock jumped 15% on its debut on Wednesday. Elsewhere, Oracle added 36% on Wednesday after its earnings late Tuesday. Klarna is down 2.5% in pre-market trade on Thursday, and Oracle is up 1.1%. Gold fell to $3,622.17 an ounce midday Thursday, from $3,646.88 at the time of the London equities close on Wednesday. A barrel of Brent fell to $66.98, from $67.31. Gold miner Fresnillo and oil major BP were among the best performers in London, despite the fall in the bullion and Brent prices. Fresnillo was up 2.1% and BP added 1.2%. Fresnillo shares have more than trebled this year. Trainline shares steamed ahead, adding 8.3%. It announced a new share buyback after a ‘robust’ first half. For the full year, which ends in February, Trainline reconfirmed its year-on-year growth expectations for net ticket sales of between 6% and 9% and revenue of between 0% and 3%. However, the company now expects adjusted earnings before interest, tax, depreciation and amortisation to grow at the top end of its previous guidance range of between 6% and 9%. In addition, Trainline announced that once its current share buyback ends, it will ‘launch an enhanced repurchase programme’ worth £150.0 million. THG shares pushed 9.6% higher. It said sales momentum was building, despite a weak start to the financial year, with trading in the third quarter the strongest in 2025 so far. The Manchester-based retail firm, behind brands such as Lookfantastic and Myprotein reported a pretax loss of £66.7 million in the first half of 2025 widened from £56.4 million the year prior. Revenue weakened 7.6% to £783.4 million from £848.1 million, or by 2.6% at constant currency. THG Beauty sales dropped 12%, or by 5.9% at constant currency, while THG Nutrition sales grew 1.1%, or by 3.1% at constant currency. THG said trading gained momentum throughout the first six months of 2025 and this has continued into the third quarter, which has seen the strongest trading performance in the year so far. As a result, THG maintained guidance. It expects THG Beauty to deliver second half revenue growth of 1.0% to 3.0% at constant currency, and predicts growth of 10% to 12% at THG Nutrition. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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