Equities in London were on the up early Thursday before a eurozone rate decision and US inflation data, with Trainline among the standout performers in morning dealings.
The ECB is expected to leave rates unmoved on Thursday, though next week, the Federal Reserve is expected to cut. The size of the cut could hinge on Thursday’s consumer price index data.
The FTSE 100 index rose 40.78 points, 0.4%, at 9,266.17. The FTSE 250 was up 56.21 points, 0.3%, at 21,590.31, and the AIM All-Share was up 2.91 points, 0.4%, at 764.92.
The Cboe UK 100 was up 0.4% at 929.12, the Cboe UK 250 was up 0.2% at 18,875.60, but the Cboe Small Companies was 0.1% lower at 17,042.20.
In Paris, the CAC 40 was up 0.3%. In Frankfurt, the DAX 40 was flat.
The pound fell to $1.3514 on Thursday morning from $1.3548 at the time of the London equities close on Wednesday. The euro faded to $1.1692 from $1.1722. Against the yen, the buck rose to JP¥147.80 from JP¥147.35.
The yield on the US 10-year Treasury was quoted at 4.06%, where it stood late Wednesday afternoon London time. The 30-year yield remained at 4.71%.
In New York on Wednesday, the Dow Jones Industrial Average fell 0.5%, the S&P 500 added 0.3% and the Nasdaq Composite edged up marginally.
In Tokyo on Thursday, the Nikkei 225 ended up 1.2%. The Shanghai Composite in China surged 1.7%. The Hang Seng Index in Hong Kong was down 0.3% in late trade. Sydney’s S&P/ASX 200 fell 0.3%.
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.
‘After a subdued PPI print yesterday, the chances of today’s US core CPI exceeding the consensus 0.3% MoM are lower. We expect firmer conviction on three Fed cuts by year-end after today’s release and a weaker USD. In the eurozone, the ECB meeting should have little impact on FX, with only some minor EUR downside risks,’ analysts at ING commented.
The European Central Bank is expected to leave rates unmoved again, putting the central bank’s latest batch of forecasts in focus, with any nod to an inflation undershoot presenting a ‘dovish risk’ to proceedings.
In July, the Frankfurt-based official lender left interest rates unchanged despite a ‘challenging’ environment and uncertainty caused by trade disputes.
The decision, which was expected, left the rate on the deposit facility at 2.00%, on the main refinancing operations at 2.15%, and on the marginal lending facility at 2.40%.
What followed was a ‘wait-and-see holiday’, a phrase ECB President Christine Lagarde coined at the end of the last meeting, typifying the central bank’s approach to rate decisions.
That approach is likely to continue. Another hold is in the offing on Thursday, analysts predict. The ECB announces its decision at 1315 BST, and a press conference with Lagarde follows around half an hour later.
A barrel of Brent edged up to $67.38 early Thursday, from $67.31 at the time of the London equities close on Wednesday. Gold faded to $3,629.03 an ounce from $3,646.88.
In London, shares in the largest FTSE 100 listings were on the up, supporting the index. Among them, Shell rose 1.0%, HSBC added 0.8% and AstraZeneca rose 0.4%.
BAE Systems was the best performer, up 3.0%, during a week when geopolitical fears have come to the fore again. Shares in the aerospace and defence firm are up over 6% so far this week.
On the decline, M&G lost 2.6%. Shares have gone ex-dividend, meaning new buyers will not qualify for the latest payout.
Equipment rental firm Ashtead lost 1.4% after Jefferies cut the stock to ’hold’. Among FTSE 250s, Hays shed 2.6%. The recruiter was also cut to ’hold’ by Jefferies.
Trainline shares rose 9.2%. Trainline reported a ‘robust’ performance in its first half and the rail ticket selling platform announced a £150.0 million buyback. For the six months to August 31, Trainline’s revenue increased around 2.6% to £235 million from £229 million, the firm said in a trading statement.
Net ticket sales were 8.3% higher at £3.25 billion from £3.00 billion, it added.
‘Rail liberalisation in Europe continues to demonstrate the value Trainline brings as the preeminent domestic aggregator, most recently in Southeast France where increased carrier competition between Paris, Lyon and Marseille has driven Q2 sales growth of 34%. At the same time, Trainline Solutions has become a £1 billion sales business as we help more clients of all sizes, from SMEs to the world’s largest travel management companies, ramp up business travel sales across Europe,’ Chief Executive Officer Jody Ford said.
Looking ahead, Trainline expects adjusted earnings before interest, tax, depreciation and amortisation ‘to track above the top end’ of its full-year growth guidance range of 6% to 9%.
It affirmed its revenue and net ticket sales growth expectations. It still expects a revenue outcome ranging from flat to a 3% rise, and net ticket sales growth between 6% and 9%.
Trainline announced that once its current share buyback ends, it will ‘launch an enhanced repurchase programme’ worth £150.0 million.
‘It would imply £350 million of shares being bought back and cancelled over a three-year period,’ it added.
Fevertree surged 9.7%. It lifted its half-year dividend and reported a ‘good start to the second half of the year’. Pretax profit in the first six months of 2025 was down 15% to £11.2 million from £13.2 million, on revenue which fell 17% to £144.3 million from £172.9 million.
‘In the UK, the wider On-Trade category continues to face challenges, but our Off-Trade performance has remained robust. Importantly, more than half of the 3.6 million UK households that buy Fever-Tree are now also purchasing products from our broader portfolio such as our Ginger Beer or premium soft drinks, a clear sign that our diversification strategy is resonating with consumers and broadening the occasions in which our brand is enjoyed,’ CEO Tim Warrillow said. ‘Together with the operational progress we are making and the strong performance we have seen over the summer months, we are well placed for both the second half of the year and to capture the long-term opportunities ahead.’
Fevertree lifted its half-year dividend to 5.97p per share from 5.85p.
Looking ahead, it said: ‘The group has made a good start to the second half of the year across our regions and we remain comfortable with full year market expectations.’
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