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Yahoo
06-08-2025
- Business
- Yahoo
Blue chips in favour ahead of likely Bank of England interest rates cut
The FTSE 100 (^FTSE) closed higher on Wednesday ahead of an expected interest rate reduction by the Bank of England on Thursday. The FTSE 100 index closed up 21.58 points, 0.2%, at 9,164.31. The FTSE 250 (^FTMC) ended 24.19 points higher, 0.1%, at 21,925.88 and the AIM All-Share finished up 0.87 of a point, 0.1%, at 764.35. The Bank of England is expected to maintain its quarterly pace of interest rate cuts so far in 2025 with a further quarter-point reduction on Thursday, as it maintains a balance between the trade-off of elevated inflation and softening growth and a cooling labour market. The UK's central bank held interest rates in June at 4.25%, after a 25 basis points cut in May. This followed interest rates cuts in February this year, and November and August 2024, when the base rate was first cut from 5.25%. Analysts at Citi said: 'We expect the MPC to cut the bank rate by 25bps to 4.0%. This outcome is largely consensual by now and priced accordingly. This, however, is where the clarity ends. 'There is little consensus regarding the expectations for content and tone of the MPC communication; the vote split in the committee; the forecast updates; and of course, the subsequent rate path. 'Unless the MPC actively attempts to narrow the range of expectations by displaying a stronger degree of agreement, this situation might not change much after Thursday.' At its June meeting, the nine-member monetary policy committee voted 6-3 in favour of a hold. This time around, analysts expect Catherine Mann to vote for the status quo, with Swati Dhingra likely to put the case for a larger 50 basis points cut. Morgan Stanley said BoE chief economist Huw Pill could vote for a cut 'but our level of confidence is not high'. In addition, Morgan Stanley said Alan Taylor could join Dhingra in voting for a 50bp reduction. In Europe, the CAC 40 (^FCHI) in Paris edged up 0.2%, while the DAX (^GDAXI) 40 in Frankfurt rose 0.3%. In New York, the Dow Jones Industrial Average (^DJI) was up 0.3%, the S&P 500 (^GSPC) was 0.6% higher, and the Nasdaq Composite (^IXIC) advanced 0.8%. Stocks received some support as US President Donald Trump claimed that Washington was 'very close to a deal' to extend a China tariffs truce provided some optimism. Dozens of economies around the world including the EU and India are set to face higher US tariffs on Thursday, as Mr Trump's long-threatened 'reciprocal' duties over trade practices he deems unfair take effect. AJ Bell analyst Danni Hewson said an agreement between Washington and Beijing would 'remove the last remaining big uncertainty around tariffs as a 12 August deadline approaches'. Mr Trump on Wednesday imposed an additional 25% tariff on Indian goods over New Delhi's continued purchase of Russian oil, a key revenue source for Moscow's war in Ukraine. The tariff is set to take effect in three weeks and would be added on top of a separate 25% tariff entering into force on Thursday. Weak economic data on Tuesday raised concerns of an economic slowdown in the US. But Kathleen Brooks, research director at trading group XTB, said 'decent' corporate results in the US and Europe were overshadowing these concerns and the impact of Mr 'Trump's continuing obsession with tariffs'. In a Tuesday interview with CNBC, Mr Trump said he was looking at hitting pharmaceuticals with tolls that eventually reach 250%, while semiconductors were also in the firing line. The pound rose to 1.3343 dollars late on Wednesday afternoon in London, compared to 1.3301 dollars at the equities close on Tuesday. The euro traded at 1.1639 dollars, higher against 1.1579 dollars. Against the yen, the dollar was trading lower at 147.34 yen compared to 147.42 yen. The yield on the US 10-year treasury was at 4.22%, widened from 4.20%. The yield on the US 30-year treasury was 4.81%, stretched from 4.77%. On the FTSE 100 (^FTSE), Hiscox (HSX.L) rose 9.4% as it announced better-than-expected first-half profit and increased its share buyback by 100 million dollars. The Bermuda-based specialist insurer posted pretax profit of 276.6 million dollars for the six months that ended June 30, down 2.4% from 283.5 million dollars a year before, but 30% ahead of 212 million dollars Visible Alpha consensus. 'We have delivered a strong performance in the first half with profitable growth in each of our businesses,' said chief executive Aki Hussain. In addition, Hiscox increased the size of its share buyback to 275 million dollars from 175 million dollars. Meanwhile, Guinness owner Diageo (DGE.L), up 3.9%, and oil major BP (BP.L), up 3.2%, extended gains after Tuesday's well received earnings. But Coca-Cola Europacific Partners (CCEP.L) slumped 9.2% as it cut annual revenue guidance despite a 'solid' first half for the soft drink bottler. The company, which operates in over 30 markets including Australia, Germany, Great Britain and Spain, now expects revenue growth between 3% and 4%, a downgrade from its prior expectation of 4% growth for 2025. Elsewhere, British Airways owner IAG (IAG.L) fell 2.0% after UBS (UBS) downgraded to 'sell' from 'neutral'. IAG has flown high in the last 12 months with shares more than doubling. But UBS suggested this could be as good as it gets, citing concerns over likely slowing momentum in profit growth, North Atlantic yield progression, the UK economic backdrop and changes in the Avios loyalty programme. On the FTSE 250 (^FTMC), Telecom Plus (TEP.L) climbed 2.9% as it reported the integration of TalkTalk customers was going well but TP ICAP (TCAP.L) fell 8.1% as profit fell short of City hopes. The interdealer broker said pre-tax profit in the first half of 2025 edged up 2.5% to £123 million from £120 million a year prior. Adjusted earnings before interest and tax advanced 8.2% to £184 million from £170 million, though Shore Capital Markets said the outcome fell short of consensus of £189 million. Brent (BZ=F) oil was quoted higher at 68.31 dollars a barrel in London on Wednesday, up from 68.04 dollars late on Tuesday. Gold (GC=F) eased to 3,375.48 dollars an ounce against 3,385.82 dollars. The biggest risers on the FTSE 100 (^FTSE) were Hiscox (HSX.L), up 119.0 pence at 1,379.0p, Fresnillo (FRES.L), up 135.0p at 1,655.0p, Diageo (DGE.L), up 79.5p at 1,983.5p, BP (BP.L), up 12.90p at 430.35p and London Stock Exchange (LSEG.L), up 296.0p at 10,100.0p. The biggest fallers on the FTSE 100 were Coca-Cola Europacific Partners (CCEP.L), down 680.0p at 6,710.0p, Coca-Cola HBC (CCH.L), down 270.0p at 3,652.0p, Glencore (GLEN.L), down 16.3p at 284.75p, Relx (REL.L), down 168.00p at 3,646.0p and Pearson (PSON.L), down 43.5p at 1,083.5p. Thursday's local corporate calendar sees half year results from bookmaker Flutter Entertainment (FLTR.L), hotel operator InterContinental Hotels Group (IHG.L) and advertising group WPP (WPP.L). The global economic calendar on Thursday has the UK interest rate decision and weekly jobless claims data in the US. – Contributed by Alliance News Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-07-2025
- Business
- Yahoo
FTSE 100 falls back after passing 9,000 milestone
The FTSE 100 (^FTSE) closed lower on Tuesday, after briefly topping 9,000, as US inflation figures began to show the impact of tariffs – putting rate cut hopes in doubt. The FTSE 100 index closed down 59.74 points, 0.7%, at 8,938.32. It earlier hit a new all-time peak of 9,016.98 – crossing the 9,000 threshold for the first time. The FTSE 250 (^FTMC) ended down 34.31 points, 0.2%, at 21,690.46, and the AIM All-Share fell 3.02 points, 0.4%, at 771.03. Stocks in New York were mixed at the time of the London close on Tuesday as investors weighed inflation figures, earnings and some good news for chip maker, Nvidia (NVDA). The Dow Jones Industrial Average (^DJI) was down 0.6%, the S&P 500 index (^GSPC) was up 0.1%, while the Nasdaq Composite (^IXIC) climbed 0.7%. US consumer price inflation accelerated in line with expectations in June, data published by the Bureau of Labor Statistics showed. The consumer price index rose by 2.7% in June from a year before, as expected by the FXStreet-cited market consensus and picking up pace from 2.4% in May. On a monthly basis, CPI inflation accelerated to a seasonally adjusted 0.3% in June from 0.1% in May. Annual core CPI inflation, which strips out food and energy, accelerated to 2.9% in June, as expected by Bloomberg, from 2.8% in May. Bank of America said the report 'finally provided ample evidence that tariffs are being passed onto consumers'. ING said the slightly softer-than-expected June core inflation reading keeps alive the chances of a September Federal Reserve interest rate cut, but 'the risk is that we get less benign prints for July and August'. 'That means we will need to see clear evidence of softer jobs figures to trigger Fed action before December,' it added. ING thinks the Fed could then cut rates by 50 basis points. Nvidia (NVDA) jumped 4.4% after it said the Trump administration has relaxed restrictions on exporting a key artificial intelligence product designed specifically for the Chinese market, saying it hoped to resume deliveries of its H20 chip 'soon'. The company said 'the US government has assured Nvidia that licences will be granted, and Nvidia hopes to start deliveries soon'. Dan Ives, at Wedbush Securities, said it was a 'watershed moment for Nvidia, the AI revolution thesis, and the overall US tech industry'. He called it a 'monster win' for Nvidia and also a 'major bullish tailwind for the tech sector as the green light for Nvidia will propel Street estimates to go up meaningfully over the coming years with China back in the fold'. Investors also weighed US banking earnings which saw gains for JPMorgan (JPM) and Citi (C), while Wells Fargo (WFC) fell after lowering net interest income guidance. The yield on the US 10-year Treasury was quoted at 4.43%, trimmed from 4.44%. The yield on the US 30-year Treasury was quoted at 5.02%, stretched from 4.98%. The pound was quoted at 1.34 dollars at the time of the London equities close on Tuesday. The euro fell against the dollar to 1.16. On the FTSE 100 (^FTSE), Barratt Redrow (BTRW.L) fell 9.1% as planning delays, one-off charges and lower-than-expected sales in the current financial year prompted analysts to forecast double-digit earnings downgrades. 'We expect consensus estimates to be down around 12% to 15% for FY26 on the back of the weak outlets and volume guidance and the incremental exceptional charges on legal liabilities are likely to be a further disappointment,' Citi analyst Ami Galla wrote. In a trading update on Tuesday, Barratt Redrow predicted adjusted profit for the financial year to June 30 in line with market expectations, though home completions fell short of its guidance, and it warned that UK planning reforms are taking longer than hoped to take effect. 'We have seen some improvement in mortgage market competition and availability, but underlying private sales activity has remained sensitive to consumer caution, driven by the economic backdrop and the ongoing affordability challenges faced by homebuyers. The London housing market has been particularly challenging with weak demand from both domestic and international homebuyers,' Barratt Redrow said. For financial 2026, Barratt Redrow anticipates total home completions in a range of 17,200 to 17,800, including around 600 completions from joint ventures. The statement weighed on peers Persimmon (PSN.L), down 2.2%, while Taylor Wimpey (TW.L) slipped 2.5%. Faring better, Experian (EXPN.L) climbed 4.3% after the credit checking agency said revenue in the three months that ended June 30 was up 12% on-year, both at actual foreign exchange rates and constant currency. Experian said that financial services performed 'strongly', with key contributors including new products and 'modestly improved underlying client activity'. Organic revenue growth was 8% at constant currency. The strongest organic revenue rise came in North America, at 9%. In Latin America, organic revenue growth was 5%, while in the Europe, Middle East & Africa and Asia Pacific grouping, it was 7% higher. In the UK & Ireland division, it was 1%. In European equities on Tuesday, the Cac 40 (^FCHI) in Paris closed down 0.5%, as did the Dax (^GDAXI) 40 in Frankfurt. Brent (BZ=F) oil fell to 68.94 dollars a barrel at the time of the London equities close on Tuesday. The biggest risers on the FTSE 100 (^FTSE) were Experian (EXPN.L), up 165.00 pence, at 4,018.00p, WPP (WPP.L), up 5.80p at 420.40p, Polar Capital Technology Trust (PCT.L), up 4.50p at 380.00p, Bunzl (BNZL.L), up 22.00p at 2,298.00p and Associated British Foods (ABF.L), up 18.00p at 2,106.00p. The biggest fallers on the FTSE 100 were Barratt Redrow (BTRW.L), down 39.20p at 377.30p, ConvaTec (CTEC.L), down 14.60p at 244.40p, Fresnillo (FRES.L), down 72.00p at 1470.00p, Endeavour Mining (EDV.L), down 62.00p at 2,244.00p and JD Sports (JD.L), down 2.24p at 83.88p. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
FTSE 100 closes winning week on the back foot
London's FTSE 100 closed a winning week on the back foot after soft economic growth figures and threats of further tariffs from the US. 'The UK economy being stuck in the mud and the threat of high tariffs on Canada won't be a shock to markets, but they are hard to ignore,' said Dan Coatsworth, investment analyst at AJ Bell. 'After a strong start to the week, investors ran out of energy on Friday,' he added. The FTSE 100 index closed down 34.54 points, 0.4%, at 8,941.12. The FTSE 250 ended down 81.45 points, 0.4%, at 21,613.25, but the AIM All-Share rose 0.42 of a point, 0.1%, at 773.55. For the week, the FTSE 100 rose 1.3%, the FTSE 250 climbed 0.3% and the AIM All-Share was down 0.1%. Figures showed the UK economy shrank again in May, confounding expectations for a modest rise. According to the Office for National Statistics, UK gross domestic product fell 0.1% on-month in May. It followed a 0.3% fall in April from March. The economy had been expected to grow 0.1% in May, however, according to consensus cited by FXStreet. More positively, growth in March was revised up to 0.4%, from 0.2% before leaving GDP up 0.5% in the three months to May. Peel Hunt's Kallum Pickering said the 'material slowdown' in the second quarter did not come as a major surprise. 'First quarter activity was lifted by exporters increasing production ahead of anticipated US tariffs, as well as domestic homebuyers accelerating purchases ahead of the stamp duty rise on 1 April. 'Second quarter activity, meanwhile, is depressed by rising employment taxes and higher minimum wages, as well as increases in regulated prices for energy and water,' Mr Pickering said. But the softer-than-expected May suggests some downside risk to Mr Pickering's forecast that real GDP will expand by 0.2% quarter-on-quarter in the second quarter, he said. Goldman Sachs left its second quarter GDP forecast at 0.1% quarter-on-quarter but nudged its forecast for 2025 as a whole upwards to 1.2% from 1.1%, given the upward revision to March's figure. The data put sterling under pressure. The pound was quoted at 1.3503 dollars at the time of the London equities close on Friday, lower compared with 1.3561 dollars on Thursday. The euro traded higher at 1.1699 dollars, against 1.1679 dollars. Against the yen, the dollar was trading higher at 147.34 yen compared with 146.49 yen. In European equities on Friday, the CAC 40 in Paris closed down 1.0%, while the DAX 40 in Frankfurt ended 0.8% lower. Stocks in New York were lower at the time of the London close on Friday. The Dow Jones Industrial Average was down 0.7%, the S&P 500 index was 0.4% lower, and the Nasdaq Composite gave back 0.2%. Tariff nerves resurfaced as US President Donald Trump said the US will impose a 35% tariff on Canada at the start of August. The US president sent a letter to Canada late on Thursday, following an interview in which Mr Trump warned EU nations to expect a tariff announcement targeting the bloc 'today or tomorrow'. He said countries that had not received a letter from him would face tariffs of 15% to 20%. 'We're just going to say all of the remaining countries are going to pay, whether it's 20% or 15%. We'll work that out now,' Mr Trump told NBC News. Mr Trump's 'reciprocal' tariffs are currently set at 10%. The yield on the US 10-year Treasury was quoted at 4.41%, widening from 4.37%. The yield on the US 30-year Treasury was quoted at 4.93%, stretched from 4.88%. On the FTSE 100, BP advanced 3.3%. It guided a pick-up in upstream output in the second quarter, but also expects results to be hit by weaker commodity prices and impairments. The London-based oil major said it now expects upstream production for the second quarter that ended on June 30 to be higher against the first quarter, an improvement on its prior estimate for production to be broadly flat. In the gas and low carbon energy offering, realisations are expected to contribute a 100 million dollar to 300 million dollar hit, when compared with the first quarter, however. In oil production and operations, a chunkier hit in the range of 600 million dollars to 800 million dollars has been earmarked. The company noted 'production mix effects and the price lags on BP's production in the Gulf of America and the UAE'. 'There was a significantly higher level of turnaround activity' in its products segment, the company noted. 'The oil trading result is expected to be strong.' 'Finally some encouraging news from BP, with a 2Q25 outlook statement that should reverse the swath of negative revisions that consensus has made in recent weeks,' commented Citi analyst Alastair Syme. Further support came as Brent oil rose to 70.38 dollars a barrel at the time of the London equities close on Friday, from 68.89 dollars late on Thursday. A jump in the gold price boosted miners Fresnillo and Endeavour Mining, up 2.9% and 2.8% respectively, while on the FTSE 250, Hochchild Mining advanced 5.8%. Gold was quoted higher at 3,364.33 dollars an ounce against 3,320.06 dollars. Heading south, SSP fell 8.1% after UBS downgraded to 'sell' from 'neutral'. UBS believes weak volumes and lower near-term capacity put consensus forecasts at London-based operator of food and beverage outlets in travel locations at risk. The biggest risers on the FTSE 100 were Fresnillo, up 51 pence, at 1,516.0p, BP, up 13.3p, at 402.0p, Endeavour Mining, up 60.0p at 2,280.0p, British American Tobacco, up 81.0p at 3,788.0p and Aviva, up 10.6p at 627.0p. The biggest fallers on the FTSE 100 were JD Sports, down 2.96p at 87.6p, GSK, down 46.0p at 1,408.5p, WPP, down 12.6p at 420.8p, Smith & Nephew, down 33.0p at 1,122.5p and Croda International, down 82.0p at 2,978.0p. There are no significant economic events on Monday. The week picks up with US inflation figures on Tuesday and UK inflation and labour market data on Wednesday and Thursday. Monday's UK corporate calendar sees a trading update from investment manager, Ashmore Group. Contributed by Alliance News Sign in to access your portfolio
Yahoo
02-07-2025
- Business
- Yahoo
Worries over future of Chancellor hit UK stocks, the pound and bond markets
Equities in London underperformed European counterparts on Wednesday, as worries over the future of the Chancellor hit investor sentiment, knocked the pound and rocked bond markets. The FTSE 100 suffered a minor fall, with a rise in mining shares tempering its decline, though there was a slump for housebuilders. A sharper fall for the FTSE 250 typified a drab day for more UK-focused stocks, meanwhile. The FTSE 100 index lost 10.64 points, 0.1%, at 8,774.69. The FTSE 250 plunged 290.67 points, 1.3%, at 21,452.49, and the AIM All-Share fell 5.18 points, 0.7%, at 767.76. In European equities on Wednesday, the CAC 40 in Paris perked up 1.0%, while the DAX 40 in Frankfurt added 0.5%. Rachel Reeves is 'going nowhere' and will remain as Chancellor, Downing Street said, despite Prime Minister Sir Keir Starmer declining to give her a public show of support. The Chancellor was visibly tearful in the Commons, as her position came under intense scrutiny after the welfare U-turn, which put an almost £5 billion black hole in her fiscal plans. But allies said she was dealing with a 'personal matter' and No 10 said she had Sir Keir's 'full backing'. 'Since the welfare Bill will now not generate the £5 billion in savings that were originally mooted, gilt investors will be asking how Reeves will balance the books,' Rabobank analysts commented. The analysts said even though a Labour minister this morning ruled out increases to income tax, national insurance or VAT, 'the prospect of more taxation does appear to be a natural conclusion ahead of the autumn budget'. The yield on the 10-year UK Government bond had sat as high as 4.68% earlier on Wednesday, compared with around 4.45% late Tuesday. XTB analyst Kathleen Brooks commented: 'The sharp rise in bond yields happened during PMQs, the leader of the opposition asked the Prime Minister if he would confirm if Rachel Reeves would remain as Chancellor. The PM refused to say that the Chancellor would remain in position until the end of this Parliament, as a visibly distressed Reeves was watching on. The PM might be keeping his options open at this stage, but the Chancellor is a strange choice to axe from a market perspective.' Stocks exposed to rising borrowing costs fell on Wednesday. Housebuilder Berkeley Group was among the worst large-cap performers, sinking 7.9%. The pound was quoted down at 1.3612 dollars late on Wednesday afternoon in London, compared with 1.3705 dollars at the equities close on Tuesday. The euro stood higher at 1.1781 dollars, against 1.1770 dollars. Against the yen, the dollar was trading higher at 143.85 yen compared with 143.62 yen. XTB's Ms Brooks added: 'The pound is now the weakest currency in the G10 FX space, as the pound falls and yields rise. This is a sign of fiscal stress, which the UK has had to weather before. 'With all the main UK asset classes under stress today, the Government needs to be careful about its next steps. Will a surge in borrowing costs, even though the Bank of England is set to cut rates next month, cause another U-turn on benefit spending? Will there be cuts announced elsewhere, or will the Government try and tap the taxpayer for more funds?' In New York, the Dow Jones Industrial Average was marginally higher, the S&P 500 added 0.2% and the Nasdaq Composite rose 0.7%. The yield on the US 10-year Treasury was quoted at 4.29%, widening from 4.26% a day prior. The yield on the US 30-year Treasury stretched to 4.83%, widening from 4.79%. Back in London, Bytes Technology slumped 33%. The Surrey-based enterprise software firm said it expects gross profit to be at a similar level to last year and operating profit to be marginally lower, followed by more normalised growth in the second half to February 28 2026. Bytes said trading has been hit by a 'challenging macroeconomic environment', resulting in some deferral of customer buying decisions. Greggs shares fell after saying operating profit could be lower than last year, as June's hot weather reduced demand for baked goods. The Newcastle-based pastry provider said that despite 'good progress' in May, footfall declined in June amid very high temperatures, although demand for cold drinks increased. Greggs said total sales were up 6.9% in the 26 weeks to June 28, the end of its first half, to £1.03 billion, with like-for-like sales growth of 2.6%. The baker forecasts operating profit in the first half to be lower than last year, due to last year's stronger comparative and the phasing of refurbishments and cost recovery initiatives across the current year. The stock declined 15%. Topps Tiles surged 8.8%. It reported a strong acceleration in sales in its third quarter and said it expects margins to improve, despite ongoing cost pressures. The Leicestershire-based retailer said group-adjusted sales, excluding its CTD brand, rose 10% year-over-year in the 13 weeks to June 28, up from 4.1% growth in the first half. Year-to-date, adjusted sales are 6.1% higher. Topps Tiles said it expects its adjusted gross margin in the second half to be 'slightly higher' than in the first half. However, the firm flagged around £4 million in added annualised costs from April, stemming from changes to UK national insurance rates and the national living wage. Brent oil was quoted higher at 67.57 dollars a barrel at the London equities close on Wednesday, up from 66.97 dollars at the same time on Tuesday. Gold was quoted up at 3,341.71 dollars an ounce against 3,286.04 dollars. The biggest risers on the FTSE 100 were Glencore, up 14.75p at 306.00p, Antofagasta, up 84.00p at 1,916.00p, Spirax, up 260.00p at 6,175p, Anglo American, up 90.50p at 2,263.50p, and Ashtead Group, up 141.00p at 4,788.00p. The biggest fallers on the FTSE 100 were Berkeley Group, down 308.00p at 3,600.00p, Persimmon, down 88.00p at 1,210.50p, NatWest, down 27.60p at 473.80p, ConvaTec, down 14.60p at 257.40p, and Land Securities, down 33.50p at 600.00p. Thursday's economic calendar has the latest US jobs report. The US labour market took a turn for the worse last month, according to a tracker from payroll processor ADP. Private employers shed 33,000 jobs last month, a sharp reversal from the revised gain of 29,000 in May. The FXStreet-cited consensus had expected a gain of 95,000 jobs for June. Contributed by Alliance News. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
Babcock shines but FTSE 100 gives up early gains
The FTSE 100 closed lower on Wednesday, well below early highs, despite a stellar showing from Babcock International after well-received results. The FTSE 100 index closed down 40.24 points, 0.5%, at 8,718.75. It had earlier traded as high as 8,792.43. The FTSE 250 ended 28.16 points lower, 0.1%, at 21,298.04, and the AIM All-Share fell 2.09 points, 0.3%, at 760.45. In European equities on Wednesday, the CAC 40 in Paris closed down 0.8%, and the DAX 40 in Frankfurt ended 0.6% lower. In London, Babcock International leapt 11% after it raised medium-term guidance, increased the dividend and launched its first-ever share buyback as it said it stands to benefit from increased spending on defence. Babcock said it expects to achieve its previous medium-term target of an underlying operating margin of 8% in financial 2026, 'at least one year earlier than we anticipated'. Underlying operating margin in the financial year to March 31 improved to 7.5% from 5.4%. Babcock's new medium-term underlying operating margin aim is 'at least 9%', up from 'at least' 8% before. Babcock reported pre-tax profit of £329.1 million in the financial year to March 31, surging 52% from £216.7 million a year prior. Revenue was 11% higher at £4.83 billion from £4.39 billion. Growth, it said, was driven by Nuclear and Marine. 'This is a new era for defence,' declared chief executive officer David Lockwood. Mr Lockwood said the strong financial performance in financial 2025, with 'operational momentum across the business', has enabled the firm to 'upgrade our medium-term guidance, increase our dividend and launch a £200 million share buyback programme for the first time in the company's history'. Defence and aerospace stocks Rolls-Royce and BAE Systems rose 0.8% and 1.0% respectively as Nato agreed to ramp up defence spending. The deal hatched by Nato sees countries promise to dedicate 3.5% of GDP to core military spending by 2035, and a further 1.5% to broader security-related areas such as infrastructure. On Wall Street, markets were mixed at the time of the London close on Tuesday. The Dow Jones Industrial Average was down 0.2%, the S&P 500 was flat, and the Nasdaq Composite was up 0.3%. The yield on the US 10-year Treasury was quoted at 4.32%, stretched from 4.30%. The yield on the US 30-year Treasury was quoted at 4.86%, widened from 4.85%. The pound was little changed at 1.3622 dollars at the time of the London equities close on Wednesday, compared to 1.3621 dollars on Tuesday. The euro stood higher at 1.1626 dollars against 1.1621 dollars. Against the yen, the dollar was trading at 145.60 yen, up compared to 144.84 yen. Back in London, WPP led the blue-chip fallers, down 3.3%, as Barclays downgraded to 'underweight' and Goldman Sachs lowered its share price target. On the FTSE 250, Moonpig fell 4.1% ahead of full-year results on Thursday, while Tritax Big Box REIT fell 2.9% after striking a cash and shares deal to acquire Warehouse REIT, which rose 5.6%. Tritax Big Box will pay 47.2p in cash, plus 0.4236 of one of its own shares, for each share in Warehouse REIT, in a deal which values its fellow industrial warehouse investor at £485.2 million. THG leapt 13% after disclosing a 'much improved' second quarter in its core Beauty and Nutrition arms, as it returned to revenue growth. The Manchester-based retail firm, behind brands such as Lookfantastic and Myprotein, said the group returned to constant currency revenue growth in the quarter 'underpinned by a strong June exit rate supporting unchanged full-year 2025 guidance'. Andrew Wade, analyst at Jefferies, said it was a 'solid' update and 'with momentum building and forecasts stabilised', adding he sees 'clear upside' to the share price. Mr Wade said financial 2026 'looks set to be the year in which THG demonstrates its underlying potential – we anticipate both Beauty and Nutrition will be in robust growth, and this should drop through to a year of strong cash generation – the template for future years'. Elsewhere, Ultimate Products shares slumped 30% as it warned that it expects full-year adjusted earnings before interest, tax, depreciation and amortisation below consensus, with sales weighted toward lower margin product categories. The Manchester, England-based owner of homeware brands including Salter and Beldray said it expects an adjusted Ebitda for the year to the end of July of £12.5 million, against a consensus of £14.3 million. It would also be below the £18.0 million it achieved in financial 2024. Brent oil steadied on Wednesday after heavy falls the day before, trading at 68.18 dollars a barrel, up from 68.08 dollars on Tuesday. Gold was quoted higher at 3,323.77 dollars an ounce against 3,314.07 dollars. The biggest risers on the FTSE 100 were Babcock International, up 111.0 pence at 1,144.0p, JD Sports, up 1.74p at 78.4p, Fresnillo, up 29.0p at 1,439.0p, Scottish Mortgage Investment Trust, up 17.5p at 1,022.5p, and Endeavour Mining, up 34.0p at 2,246.0p. The biggest fallers on the FTSE 100 were WPP, down 17.0p at 505.0p, easyjet, down 13.8p at 525.2p, Anglo American, down 49.5p at 2,005.5p, Berkeley Group, down 86.0p at 3,816.0p and Croda, down 67.0p at 2,993.0p. Thursday's global economic calendar has US weekly initial jobless claims data, quarterly GDP and personal consumption expenditures figures and durable goods orders figures. Thursday's local corporate calendar has full-year results from electricals retailer Currys, and trading statements from outsourcer Serco and automotive distributor Inchcape. – Contributed by Alliance News Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
