London’s blue-chip index experienced an uptick on Thursday, buoyed by advancements in the energy sector, as investors positioned themselves ahead of significant inflation data from the US to assess the trajectory of the Federal Reserve’s monetary policy.
The blue-chip FTSE 100 index rose 0.3% to 10,782.19 points by 1004, while the midcap FTSE 250 also climbed 0.3%.
- Shell opens new tab rose 3.2%, leading gains on the FTSE 100 after the oil major reported its highest quarterly profit since 2022, and increased its share buyback program.
- Energy stocks opened new tab outperformed the broader market, with the sector climbing nearly 2.8% despite a dip in oil prices.
- Conversely, Haleon slid 15.6%, set for its biggest one-day fall since its IPO in 2022 after the consumer health company cut its organic revenue growth forecast.
- Haleon’s slide has positioned the pharma sector on track for another session of sharp declines, following GSK’s disappointing results on Wednesday.
- Declines in pharma and banks limited the overall rise. Banks experienced a decline, influenced by a 4.3% drop in Lloyds Banking Group following the release of its subdued third-quarter results.
- Finance minister John Healey’s tax increases on banks and gambling firms, which were not as severe as anticipated, led to a rally in their stocks on Wednesday.
- British defence firms BAE Systems and Rolls-Royce gained 2.6% and 1.1% respectively, extending gains after Healey stated that “reprioritisation” would address a £4.7 billion ($6.3 billion) gap in Britain’s Defence Investment Plan.
- The US Federal Reserve maintained its interest rates on Wednesday, placing Thursday’s personal consumption expenditure figures in the spotlight.
- National Grid opened new tab rose 1.1% after the power grid operator announced plans to invest approximately £400 million ($531 million) to extend the life of the electricity link between Britain and France until at least 2050.
- WPP opens new tab gained 2.1% after the ad group stated its turnaround plan was on track following a report of a smaller decline in third-quarter like-for-like revenue.
