UK stocks began the last trading of the week in better spirits despite a turbulent overnight session for US equities as shares in Facebook owner Meta lost $250 billion in value, the largest single one-day loss in US history, contributing to a 4.2% slide in the Nasdaq 100 technology index.
In contrast, Amazon delivered better than expected earnings thanks to its cloud business, sending its shares up 14% in after-market trading and adding $200 billion in value, the largest ever one-day gain for a US stock.
All eyes will be on the monthly US jobs data this lunchtime and in particular the increase in average hourly earnings which is a useful proxy for wage inflation.
On the currency markets sterling was steady at $1.3590 against the dollar, while in commodity markets Brent crude futures continued to squeeze higher touching $91.40 per barrel, adding to inflation concerns.
At 8.30am the FTSE 100 was up 67 points or 0.9% to 7,595 points led by oil and mining majors together with a sprinkling of tech and media names.
COMPANY NEWS
Travel retail group SSP (SSPG) posted a mixed trading update as the spread of the Omicron variant around the world over the holiday season and subsequent government restrictions impacted passenger numbers in many of its markets.
After running at 66% of 2019 levels from October to the start of December, revenues slowed to just 57% of 2019 levels in the eight weeks to the end of January.
On a positive note, the firm said sales were ‘trending positively’ again in the UK and some European markets, sending shares up 2.3% to 270p.
Real estate investment firm Shaftesbury (SHB), which owns a 16-acre portfolio in the heart of London’s West End, also reported a rebound in activity heading into the festive period followed by a dip in footfall due to Omicron.
Longer term, vacancy levels are trending lower towards pre-Covid levels and rent collection continues to improve with 88% of rent for the quarter to end-December collected by early February. Shares were little changed at 617p.
Shares in mobile operator Airtel Africa (AAF) added 0.9% to a new 12-month high of 158p after the firm posted strong nine-month results with growth of more than 20% in revenues and more than 30% in EBITDA (earnings before interest, taxes, depreciation and amortisation).
The firm increased its customer base by just under 6% to 125.8 million users with mobile money services proving especially popular and customer numbers up almost 20% in the period to December.
It was the first day of dealings for infrastructure employment firm Hercules Site Services (HERC:AIM) after the company raised £8 million of capital at 50.5p per share last month.
Hercules has strong relationships with infrastructure firms Balfour Beatty (BBY), Costain (COST) and Kier Group (KIE). In early trading shares gained 2p to 52.5p.
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