Consumer staples and banks boost London equities

FTSE Futures

London shares experienced an uptick on Thursday, driven by advancements in consumer staples and banking sectors, as investors evaluated corporate announcements. The blue-chip index closed up 0.4%, while the domestically focused midcap index rose 0.8%. Retail stocks were boosted by Currys. 15.6% increase following the announcement from the electricals retailer that group sales experienced a 3% growth during the summer period, positioning it to achieve projected targets. Currys also initiated a £50 million share buyback. Other major retailers such as JD Sports Fashion, Frasers, and Next also advanced.

  • Consumer staples stocks rose, with Tesco up 1.8%.
  • Heavyweight bank stocks gained 1.2%, with NatWest up 1.5%, Barclays adding 2.2%, and Lloyds up 2.1%.
  • Communication services stocks such as Airtel Africa and Auto Trader each added about 2.3%, while Rightmove advanced 2.9%.
  • Conversely, precious metal miners fell, tracking lower gold prices.
  • Endeavour Mining opens new tab down 1.7%, while Hochschild Mining opens new tab fell 3.5%.
  • Industrial miners also declined, with Anglo American down 1.2%.

In other moves, low-cost airline and travel firm Jet2 opened new tab lost 12.5% after forecasting lower profit. Peer EasyJet opened a new tab and fell 4.2% to the bottom of the FTSE 100. Animal genetics firm Genus opened new tab rose 10.4% on strong annual profit growth and China joint venture acceleration. Following a meltdown earlier this week when worries about Britain’s finances and the government’s capacity to handle them momentarily brought rates on 30-year British government bonds, or gilts, to their highest level since 1998, calm has returned to bond markets. Investors remain concerned about potential tax increases that may hinder economic growth, as Britain prepares to present its budget on November 26.

In terms of data, the construction sector in Britain experienced a slowdown for the eighth consecutive month in August, marking its longest period of decline since 2020. A survey conducted by the Bank of England indicated that British companies have noted a modest increase in their inflation expectations for the coming year. Investors are anticipating the release of July retail sales data scheduled for Friday. Stocks including Antofagasta and Admiral Group fell 2.3% and 1.5%, respectively, as they traded ex-dividend.