Market focus on Thursday was once again on earnings and trading updates, with numerous UK companies warning about cost inflation, while in the US, the results of Facebook-parent Meta were just good enough to keep faith in technology shares.
The FTSE 100 index was up 60.27 points, or 0.8%, at 7,485.88 early Thursday. The mid-cap FTSE 250 index was up 181.98 points, or 0.9%, at 20,619.75. The AIM All-Share index was up 0.71 of a point, or 0.1%, at 1,017.17.
The Cboe UK 100 index was up 0.6% at 744.95. The Cboe 250 was up 0.7% at 18,164.37. The Cboe Small Companies climbed 0.2% to 15,105.63.
In mainland Europe, the CAC 40 in Paris jumped 1.8% and the DAX 40 in Frankfurt rose 1.4% early Thursday.
Equities in Asia also were higher on Thursday. The Nikkei 225 in Tokyo rose 1.8%, while the S&P/ASX 200 in Sydney added 1.3%. The Shanghai Composite closed up 0.6%. The Hang Seng in Hong Kong was 1.4% higher in late trade.
Standard Chartered was the best large-cap performer in London, surging 12%.
The Asia-focused bank upped its annual income growth outlook.
In the three months to March 31, Standard Chartered recorded pretax profit of $1.49 billion, up 6% from $1.41 billion reported in the same period a year prior.
Operating income rose 9% to $4.29 billion from $3.94 billion. Net interest income rose 8% to $1.79 billion from $1.66 billion, while 'other' income was 10% higher at $2.50 billion from $2.28 billion.
Standard Chartered now expects income growth ‘slightly’ ahead of its previously guided 5% to 7% range.
Shares in peer Barclays climbed 1.6%, even though the bank reported a first-quarter profit fall amid chunkier impairment costs as well as ‘conduct’ charges.
Barclays posted pretax profit of £2.23 billion for the first quarter of 2022, down 6.9% annually from £2.40 billion. Credit impairment charges increased to £141 million from £55 million.
Profit also was hurt by ‘litigation and conduct charges’. These amounted to £500 million. The costs relate to ‘customer remediation costs’ from a legacy loan portfolio, as well as a previously announced £450 million hit after Barclays sold more financial products to investors in the US than it was allowed to.
The bank's total income increased 10% year-on-year to $6.50 billion from £5.90 billion.
Barclays said it remains ‘committed’ to a share buyback of £1 billion. The programme was delayed back in March, after it announced it had over-issued structured notes and exchange traded notes to US investors.
‘On the whole, Barclays has had a strong start to the year, although the fine relating to over-issuance of securities in the US has punched something of a hole in profits,’ Interactive Investor analyst Richard Hunter commented.
Sainsbury's was the worst large-cap performer, falling 6.4%.
The supermarket chain posted underlying pretax profit of £730 million for the financial year that ended March 5, more than doubled from £357 million in financial 2021 and up 25% from £586 million in financial 2020. Profit in financial 2021 was hurt by £485 million in incremental costs related to Covid-19.
The underlying profit figure topped company-compiled consensus of £727 million, as well as the company's own guidance of £720 million.
Sainsbury's swung to a statutory pretax profit of £854 million from a £164 million loss. Revenue, excluding VAT but including fuel, was 2.9% higher at £29.90 billion from £29.05 billion.
In addition, Sainsbury's hiked its dividend by 24% to 13.1 pence per share from 10.6p.
However, it warned: ‘The year ahead will be impacted by significant external pressures and uncertainties, including higher operating cost inflation and cost of living pressures impacting customers' disposable incomes.’
Sainsbury's expects underlying pretax profit to fall by as much as 14% in the new financial year. It forecasts underlying pretax profit between £630 million and £690 million.
Lancashire Holdings jumped 10%.
The insurer said gross written premiums in the first quarter of 2022 rose 35% annually to $477.9 million.
It also estimated a hit between $20 million and $30 million stemming from the war in Ukraine.
Elsewhere in London, HSS Hire was a notable AIM performer. The stock rose 6.8%.
The equipment rental firm's revenue in the financial year ended January 1 climbed 21% to £303.3 million from £250.1 million. HSS swung to a pretax profit of £6.1 million from a £29.6 million loss.
Over in Frankfurt, HelloFresh shares surged 9.2%. It said first-quarter revenue and adjusted earnings before interest, tax, depreciation and amortisation will top market expectations.
The meal-kit maker expects revenue for the first quarter of €1.92 billion, up 26% year-on-year at constant currency.
Its adjusted Ebitda is expected to fall 38% year-on-year to €99.3 million, though the figure will top market forecasts.
The Bank of Japan on Thursday kept interest rates unchanged and believes the Japanese economy is on the mend, but warned of ‘downward pressure’ stemming from Russia's invasion of Ukraine.
At the April meeting, the BoJ decided by an 8-1 majority vote to keep a negative interest rate of 0.1% - recording the same result from its March meeting - with the lone dissenter being Kataoka Goushi.
Against the yen, the dollar climbed to JP¥130.31 early Thursday UK time, from JP¥128.45 at the time of the London equities close on Wednesday.
‘The Japanese yen has fallen sharply this morning after the BoJ policy announcement that gave no indication of support for the currency. It has depreciated by around 13% against the US dollar so far this year,’ analysts at Lloyds Bank commented.
The pound rose to $1.2563 early Thursday from $1.2509 late Wednesday. The euro stood at $1.0538, up from $1.0525.
Brent oil was quoted at $104.75 a barrel early Thursday in London, down from $105.34 late Wednesday. Gold stood at $1,885.16 an ounce, largely flat from $1,885.50.
The economic events calendar on Thursday has Germany inflation data at 1300 BST and US GDP at 1330 BST.
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