Stock prices in London were mostly in the green on Thursday morning following a slew of earnings releases, ahead of a key US inflation reading.
The FTSE 100 index opened up 19.31 points, 0.3%, at 7,644.29. The FTSE 250 was up 53.29 points, 0.3%, at 19,066.87, and the AIM All-Share was down 0.68 of a point, 0.1%, at 737.36.
The Cboe UK 100 was up 0.4% at 766.62, the Cboe UK 250 was up 0.3% at 16,429.67, and the Cboe Small Companies was down 0.3% at 14,415.66.
In European equities on Thursday, the CAC 40 in Paris was [up/down] %, while the DAX 40 in Frankfurt was [up/down] %.
Eyes are firmly on a key US inflation reading on Thursday, which will be released at 1330 GMT.
According to FXStreet-cited consensus, the headline annual personal consumption expenditures inflation rate is to ease to 2.4% in January, from 2.6% in December. The core reading, the Fed’s preferred inflationary gauge, is to ebb to 2.8% from 2.9%.
‘The Fed will probably cut the rates this year, yet a cut before summer won’t be on the agenda if inflation doesn’t continue to ease. Three Fed members repeated yesterday that the timing and the pace of policy easing will depend on data. Activity on Fed funds futures gives around 64% chance for a June cut before the data. Bets could go either way. A figure in line or ideally softer than expected should keep the Fed doves betting for the first rate cut to happen in June, whereas a stronger-than-expected figure could strengthen the hawks’ hand and push the expectation of the first cut to… July,’ said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
On Wednesday, data showed that the US economy grew at a slightly weaker pace than previously expected in the final quarter of 2023.
According to a second estimate from the Bureau of Economic Analysis, real gross domestic product increased by 3.2% quarter-on-quarter on an annualised basis in the three months to December 31.
In the US on Wednesday, stocks closed lower after the data. The Dow Jones Industrial Average lost 0.1%, S&P 500 lost 0.2%, and Nasdaq Composite lost 0.6%.
The pound was quoted at $1.2667 early on Thursday in London, up compared to $1.2656 at the equities close on Wednesday. The euro stood at $1.0846, higher against $1.0835. Against the yen, the dollar was trading at JP¥149.67, lower compared to JP¥150.73.
It has been a busy morning on the FTSE 100 index, with a slew of companies announcing full year results.
Haleon rose 6.9%.
In 2023, the Surrey, England-based consumer healthcare company said revenue climbed to £11.30 billion from £10.86 billion a year earlier. Pretax profit edged up to £1.63 billion from £1.62 billion.
CEO Brian McNamara said: ‘In 2024, we expect the operating environment to remain challenging. We are confident however, that we are well positioned to deliver on both guidance for 2024 and over the medium term.’
Ocado rose 6.2%.
The Hatfield, England-based grocer and warehouse technology firm reported a pretax loss of £403.2 million in the 53 weeks ended December 3. This narrowed from £500.8 million a year ago, and was slightly better than the £410 million loss predicted by a company-compiled consensus.
The comparative period is for the 52 weeks to November to 27.
Less positively, London Stock Exchange Group lost 2.0%.
The owner of FTSE Russell and data and analytics provider LSEG, formerly known as Refinitiv, said total income in 2023 climbed 8.2% to £8.38 billion from £7.74 billion a year earlier. Pretax profit fell 3.7% to £1.20 billion from £1.24 billion.
On the back of the results, LSEG upped its dividend by 7.5% to 115.0p from 107.0p.
It also said it plans to execute up to £1 billion of buybacks in 2024. In 2023, the company returned £1.2 billion through buybacks.
In the FTSE 250, Drax Group rose 8.6%.
In 2023, the Yorkshire, England-based electricity company said revenue climbed to £8.13 billion from £7.78 billion a year earlier. Pretax profit surged to £796.4 million from £78.1 million.
On the back of the results, Drax upped its full-year dividend to 23.1p from 21.0p.
CEO Will Gardiner said: ‘Drax performed strongly in 2023 and we remained the single largest provider of renewable power by output in the UK. We have created a business which plays an essential role in supporting energy security, providing dispatchable, renewable power for millions of homes and businesses, particularly during periods of peak demand when there is low wind and solar power.’
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 0.1%. In China, the Shanghai Composite was up 1.9%, while the Hang Seng index in Hong Kong was down 0.2%. The S&P/ASX 200 in Sydney closed up 0.5%
Brent oil was quoted at $81.64 a barrel early in London on Thursday, down from $81.78 late Wednesday. Gold was quoted at $2,037.09 an ounce, up against $2,033.68.
As well as the US PCE index reading later on Thursday, there is an inflation reading from Germany at 1300 GMT.
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