|
Stock prices in London were higher on Thursday morning, the last day of April filled with trading updates and earnings releases as well as statistical data from across the world, as investors await the Bank of England’s interest rate decision due at noon. The FTSE 100 index opened up 25.72 points, 0.3%, at 10,238.83. The FTSE 250 was up 8.57 points, marginally higher, at 22,209.44, and the AIM all-share was up 2.05 points, 0.3%, at 790.48. The Cboe UK 100 was up 0.4% at 1,020.91, the Cboe UK 250 was up 0.1% at 19,303.62, and the Cboe small companies was up 0.3% at 18,032.84. Attention is on central banks. The Bank of England is due to announce its interest rate decision at 1200 BST, with consensus expecting policymakers to leave Bank Rate unchanged at 3.75%. In European equities on Thursday, however, sentiment was more subdued. The CAC 40 in Paris was down 1.1%, while the DAX 40 in Frankfurt slipped 0.3%, ahead of the European Central Bank’s rate decision at 1315 BST. The ECB is also widely expected to keep its deposit rate steady at 2.00%. Energy markets remained a dominant theme. Brent for June delivery was trading at $121.91 a barrel early Thursday, sharply higher than $111.77 late Wednesday, as geopolitical tensions continued to roil global oil supply expectations. On the diplomatic front, Pakistan could receive Iran’s revised peace proposal by Friday, according to sources, as efforts to revive stalled talks continue. US President Donald Trump responded to the current deadlock by warning that Iran ‘better get smart soon’, posting a mocked-up image of himself holding a gun on his Truth Social platform. Separately, Trump and Russian President Vladimir Putin held a 90-minute phone call discussing the Iran ceasefire and other issues. Trump later said Putin had offered to assist in addressing Iran’s uranium stockpiles, adding another layer to ongoing diplomatic manoeuvring. The pound was quoted at $1.3481 early Thursday, lower than $1.3491 at the London equities close on Wednesday. Against the euro, sterling rose to €1.1547 from €1.1530 a day prior. The euro traded at $1.1659 early Thursday, lower than $1.1695 late Wednesday. Against the yen, the dollar was quoted at JP¥160.50 versus JP¥160.24. Back in London, utilities dominated the top of the FTSE 100 leaderboard. United Utilities surged 11% after reporting sharply improved full-year results. Revenue climbed to £2.62 billion from £2.15 billion, while pretax profit more than doubled to £779.0 million from £355.0 million. Operating profit rose to £1.10 billion from £631.5 million, and earnings per share jumped to 86.1 pence from 38.8p. The water company proposed a final dividend of 35.78p, up from 34.57p a year earlier, and announced a £800 million equity raise to fully fund the equity component of its £2.5 billion investment programme. Looking ahead, United Utilities expects revenue to increase further in financial 2027 to between £2.7 billion and £2.8 billion. Severn Trent followed closely, up 6.1%, benefiting from positive sentiment across the regulated utilities sector. At the other end of the blue-chip index, Weir Group was down 7.4%. The engineering firm announced that Chief Executive Officer Jon Stanton will step down on August 1 and will be succeeded by Andrew Neilson, currently president of its minerals division, who has been appointed CEO designate. Alongside the leadership change, Weir reported first-quarter trading in line with expectations, with order growth on track and full-year 2026 guidance reiterated. The company maintained its targets for constant currency revenue, operating profit and margin growth, as well as free operating cash conversion of 90% to 100%. Weir said markets remain supportive, driven by strong mining activity and a growing project pipeline, while acquisition integration is progressing as planned. It noted some uncertainty linked to the Middle East conflict but said geopolitical volatility has so far had a ‘limited impact’ on its supply chain. Shares were also trading ex-dividend. Whitbread was the second-biggest faller, down 5.1%, after the Premier Inn owner outlined a business review and reshaping programme that will include a pause to share buybacks in its 2027 financial year. Shares were down about 8% at one stage. On the FTSE 250, Alfa Financial Software slipped 4.3% and bakery chain Greggs lost 3.6%. In Asia on Thursday, the Nikkei 225 index in Tokyo ended down 1.1%. In China, the Shanghai Composite ended down 0.1%, while the Hang Seng index in Hong Kong ended down 1.3%. The S&P/ASX 200 in Sydney closed down 0.2%. In the US on Wednesday, Wall Street ended mixed. The Dow Jones Industrial Average fell 0.6%, the S&P 500 was marginally lower, and the Nasdaq Composite edged marginally higher. Fresh data from France added to concerns about Europe’s economic backdrop. France’s economy stalled at the start of 2026, with gross domestic product unchanged in the first quarter from the fourth, according to Insee. The reading missed expectations for a repeat of the prior quarter’s 0.2% growth. Additional data showed industrial producer prices rebounded sharply in March, rising 2.4% on-month after a 1.2% fall in February. The increase reflected higher prices on both domestic markets, up 2.0%, and foreign markets, up 3.5%. On an annual basis, industrial producer prices rose 0.3%, reversing a 3.2% decline in February. The turnaround was largely driven by a surge in refined petroleum product prices, which jumped 57% on-month amid disruption linked to the Middle East conflict and the near-closure of the Strait of Hormuz. Excluding energy, producer prices rose 0.4% on-month and 0.4% on-year, pointing to more moderate underlying price pressures. Consumer prices also accelerated. Annual consumer price inflation is estimated at 2.2% in April, up from 1.7% in March, primarily due to a sharp rise in energy prices, which surged 14% year-on-year after a 7.4% increase the previous month. Gold was quoted at $4,620.617 an ounce early Thursday, higher than $4,551.30 on Wednesday, reflecting ongoing demand for safe-haven assets. Still to come on Thursday’s economic calendar, the eurozone will release GDP, CPI and unemployment data. In the US, investors await GDP figures and weekly initial jobless claims. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
