Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
London open: FTSE gains as NatWest rallies after results
London stocks rose in early trade on Friday following mixed sessions in the US and Asia, with NatWest pacing the gains after well-received results.
At 0850 BST, the FTSE 100 was up 0.5% at 8,223.09.
NatWest surged to the top of the FTSE 100 as it lifted its full-year guidance for total income to around £14bn from between £13bn and £13.5bn previously. The bank also said that return on tangible equity was set be above 14%, up from previous guidance of 12%.
Richard Hunter, head of markets at Interactive Investor, said: “Overall, this is a highly reassuring update which has received a very warm welcome in opening exchanges. The share price bounce adds to an increase of 35% over the last year, as compared to a gain of 6.6% for the wider FTSE 100, and is further evidence of the momentum which propelled the price by 55% in the last six months alone.
“NatWest has delivered an outcome which could mean that it regains its spot as the preferred play on the sector, recently being edged out by Barclays, with a market consensus which comes in at a comfortable buy.”
Elsewhere, Drax rallied after saying that full-year adjusted EBITDA was set to be at the “top end” of analysts’ consensus estimates of £881m to £996m following a strong performance in the first half.
Jupiter Fund Management and Man Group were both higher after results.
Babcock International gained after it posted a jump in full-year profit as it continued to be boosted by a “sustained uplift” in global defence budgets, with a strong performance in Nuclear, Land and Aviation.
On the downside, FirstGroup, Computacenter and Rightmove all fell after results, while Lloyds Banking Group was knocked lower by a downgrade to ‘sector perform’ from ‘outperform’ at RBC Capital Markets.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Ocado Group Plc | +4.04% | +17.20 | 442.70 |
| 2 |  |
Anglo American Plc | +3.69% | +83.50 | 2,348.50 |
| 3 |  |
Burberry Group Plc | +3.35% | +24.00 | 741.20 |
| 4 |  |
Intertek Group Plc | +2.79% | +134.00 | 4,944.00 |
| 5 |  |
Ashtead Group Plc | +2.75% | +146.00 | 5,462.00 |
| 6 |  |
Rolls-royce Holdings Plc | +2.62% | +11.30 | 442.30 |
| 7 |  |
Melrose Industries Plc | +1.90% | +10.60 | 568.20 |
| 8 |  |
Ferguson Plc | +1.89% | +310.00 | 16,705.00 |
| 9 |  |
Antofagasta Plc | +1.76% | +34.00 | 1,969.00 |
| 10 |  |
Rio Tinto Plc | +1.66% | +82.50 | 5,058.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Segro Plc | -2.51% | -22.80 | 884.40 |
| 2 |  |
Intercontinental Hotels Group Plc | -1.28% | -102.00 | 7,894.00 |
| 3 |  |
Mondi Plc | -0.94% | -14.50 | 1,534.50 |
| 4 |  |
Fresnillo Plc | -0.86% | -5.00 | 577.00 |
| 5 |  |
Itv Plc | -0.74% | -0.60 | 80.45 |
| 6 |  |
Bt Group Plc | -0.71% | -1.00 | 139.30 |
| 7 |  |
Rentokil Initial Plc | -0.69% | -3.20 | 463.80 |
| 8 |  |
Severn Trent Plc | -0.68% | -17.00 | 2,476.00 |
| 9 |  |
United Utilities Group Plc | -0.59% | -6.00 | 1,003.00 |
| 10 |  |
Imperial Brands Plc | -0.51% | -11.00 | 2,141.00 |
US close: Stocks mixed as investors digest data, Q2 earnings
Major indices delivered a mixed performance on Thursday as market participants thumbed over some key data points and more corporate earnings.
At the close, the Dow Jones Industrial Average was up 0.20% at 39,935.07, while the S&P 500 lost 0.51% to 5,399.22 and the Nasdaq Composite saw out the session 0.93% weaker at 17,181.72.
The Dow closed 81.20 points higher on Thursday, extending gains recorded in the previous session.
Earnings were in focus again on Thursday, with Ford shares down after the automotive giant’s Q2 earnings came in well and truly below expectations, while Chipotle shares was in the green after the fast-food giant topped both earnings and revenue expectations.
Elsewhere, American Airlines reported its highest-ever quarterly revenue for its second quarter on Thursday, at $14.3bn, although that still fell short of its own expectations, as the airline also lowered its full-year earnings guidance, while toymaker Hasbro said recent turnaround efforts and its divestiture of eOne had helped boost both sales and profits in Q2.
On the macro front, America’s economy grew more quickly than expected last quarter as companies ramped up investment and amid inventory accumulation. According to the Department of Commerce, gross domestic product expanded by 2.8% in quarterly annualised terms during the second quarter – up from the 1.4% clip observed during the first three months of 2024 and ahead of the 2.0% pace anticipated by economists.
In terms of inflation, the rate of increase in the price deflator for personal consumption expenditures slowed from 3.7% in the first quarter to 2.9% in the second.
On another note, Americans lined up for unemployment benefits at a slower-than-expected rate in the week ended 20 July, according to the Labor Department. Initial jobless claims fell by 10,000 to 235,000, below market expectations for a reading of 238,000 and down from the prior week’s upwardly revised print of 245,000. Although the decline was bigger than expected, last week’s print was still significantly above the year-to-date average, hinting that although the US labour market remains tight, it has seemingly softened somewhat since its post-pandemic peak.
Still on data, orders for goods made to last more than three years cratered last month, due to a steep downdraft in those for commercial aircraft. According to the Department of Commerce, in seasonally adjusted terms, durable goods orders shrank by 6.6% month-on-month to reach $264,541 and by 2.0% year-on-year. That was far weaker than the 0.3% gain anticipated by economists.
Finally, US pending home sales fell by 6.6% in May, according to the National Association of Realtors, slowing from the prior month’s 7.4% drop.
Friday newspaper round-up: Stellantis, John Lewis, FRC
Rachel Reeves is expected to reveal a £20bn hole in government spending for essential public services on Monday, paving the way for potential tax rises in the autumn budget. Labour sources said the blame lay with the Tory government, describing it as a “shocking inheritance” and accusing the former chancellor of “presiding over a black hole and still campaigning for tax cuts”. – Guardian
Britain’s plans to create advanced devices based on the mind-bending physics of the quantum world have received a £100m boost, in a move ministers hope will have a transformative impact on healthcare, transport and national security. Peter Kyle, the science secretary has announced funds to establish five quantum technology hubs across England and Scotland. They will work with industry and government to develop and commercialise devices and ultimately drive a new economy. – Guardian
Stellantis is considering putting Italian carmaker Maserati up for sale after shipments halved, triggering a €349m (£294m) writedown on the brand. The owner of the Jeep, Peugeot and Vauxhall brands said revenues from its Maserati cars fell to €631m in the first six months of 2024, down from €1.3bn a year ago. – Telegraph
John Lewis has won approval for the first of its flagship housing developments after councillors shot down local opposition to approve the controversial scheme. The partnership has been granted permission to build 353 flats on top of a Waitrose store in Bromley, south-east London. Speaking at a planning meeting on Thursday, the development control committee chairman Alexa Michael said it was a “very finely balanced” case, but there was a “large need for housing”. The scheme passed with a vote of 10 against 5, with one councillor abstaining. – Telegraph
Britain’s accounting watchdog dished out a record amount in fines last year as it concluded a number of high-profile investigations, including into audits of Carillion and London Capital & Finance. The Financial Reporting Council, which oversees the nation’s audit and accounting firms, issued financial sanctions totalling £48.2 million in the year to the end of March, surpassing the previous record of £46.5 million set in the 2021-22 financial year. – The Times
