(Alliance News) – European markets increased on Thursday, the FTSE 100, however, registering only a slight increase, investors digesting the decision of the American federal reserve on Wednesday and anticipating a probable drop in the rates of the Bank of England.
The FTSE 100 index increased by 8.20 points, or 0.1 %, to 8,567.53. The FTSE 250 won 126.74 points, or 0.6 %, at 20,463.74, and all-share AIM added 3.40 points, or 0.5 %, to 716.66.
The UK 100 CBOE increased by 0.1 % to 853.18, the CBOE UK 250 increased by 0.3 % to 17,901.63 and the CBOE Small Companies remained stable at 15,673.95.
In Paris, the CAC 40 increased by 0.5 %, while the Dax 40 in Frankfurt gained 0.6 %.
The pound sterling fell to 1.3284 US dollars early Thursday, compared to 1.3342 US dollars at the closure of the London markets on Wednesday. The euro dropped to 1.1290 US dollar, compared to 1.1344 US dollars. Faced with the Yen, the US dollar appreciated 144.42 yen, against 143.39 yen.
The Fed can afford to be patient in monetary policy, as it is waiting to see the full impact of American trade policy on the economy, the president of the Fed, Jerome Powell said on Wednesday.
“We believe that we can be patient, we will monitor the data,” said Powell, stressing that there is great uncertainty about the magnitude, scope and calendar of customs duties.
Addressing journalists, Powell said that the Fed could act quickly when “it turned out to be appropriate”, but that it would not progress to its objectives this year if the customs duties remained in force.
At the end of its two-day meeting, the Federal Open market committee unanimously voted to maintain the target range for the rate of federal funds at 4.25-4.50 %.
Wednesday in new York, the Dow Jones Industrial Average increased by 0.7 %, the S&P 500 won 0.4 %and the Nasdaq Composite ended up 0.3 %.
Thursday, in Tokyo, the Nikkei 225 on Thursday ended up 0.4 %. In China, Shanghai’s composite index won 0.3 %, while the Hong Kong Hang Seng index increased by 0.3 %. Sydney’s S&P/ASX 200 index increased by 0.2 %.
The Bank of England decides on Thursday on its interest rates, with an announcement scheduled just afternoon. A drop is expected.
“The meeting of the Banque of England today should influence the markets. If a decrease of 25 base points to 4.25 % is widely expected, the most important point today will probably be the response of the BOE to the following sentence: “Given the evolution of the assessment of the committee concerning the inflation prospects in the medium term, a progressive and prudent approach to the continuation of the withdrawal of monetary restriction measures is appropriate”. The most cautious players on the market hope that this “progressive and prudent” expression will be deleted or modified in order to report a series of larger reductions in BOE rates, “commented Ing analysts.
“Given that the market is now counting on four rate drops of 25 base points this year and that we are planning three (in May, August and November), if the softening of the BOE remains” progressive and cautious “, the pound sterling could recover. »»
Prime Minister Keir Starmer will take stock of commercial negotiations with the United States later on Thursday, Downing Street said, while Donald Trump is preparing to announce an agreement with the United Kingdom.
The American president has teased the announcement of a “major trade agreement” with a “highly respected country” in a message published this night on its Truth Social platform, and a press conference is expected around 3:00 p.m. BST.
The American media, including the New York Times, reported that the agreement concerned the United Kingdom, citing people close to the file.
A spokesperson for 10 Downing Street said that discussions with the United States were continuing “at a sustained pace and that the Prime Minister would take stock later in the day”.
The British government seeks to conclude an agreement with the United States to reduce the impact of customs duties imposed last month by Donald Trump, who struck all British exports by 10 % and steel, aluminum and 25 % cars.
If Mr. Trump actually announces an agreement with the United Kingdom, this will be the first agreement concluded since the announcement of customs duties on April 2.
According to some information, this agreement may provide for a reduction in certain British customs duties on American products, as well as a modification of the digital services tax which currently affects mainly American technological companies.
However, the government has excluded any relaxation of food standards to allow the entry of more American agricultural products to the country, or any dilution of the online security law, which some in the United States consider a restriction of freedom of expression.
In London, Next action increased by 1.2 %. The title had previously reached a record level. The company noted its annual profits forecast for the second time this year, after a first quarter better than expected.
The Leicester -based retailer said that its full prices sales had jumped 11 % in annual shift during the thirteen weeks preceding on April 26, exceeding 55 million pounds sterling its forecasts, which tabled on an increase of 6.5 %.
Next said that its results had been favored by milder weather conditions, which have enabled “much stronger” sales than expected in its stores.
Next raised its before tax forecasts from 1.07 billion to 1.08 billion pounds sterling. In March, Next had already noted its annual profit forecasts of 20 million pounds sterling.
Intercontinental Hotels Group increased by 2.6 %. The company said it was on the right track to achieve its profits for 2025, after a “solid trade performance” in the first quarter.
Revenue by available room, a key indicator in the hotel sector, increased by 3.3 % in annual sliding in the first quarter. The owner of Holiday Inn said that his Revpar had increased by 3.5 % in America, by 5.0 % in Europe, the Middle East, Asia and Africa, but had dropped by 3.5 % in Grande China.
“We have recorded solid commercial performance and sustained development for our world renowned brands in the first quarter, despite increased volatility in the macroeconomic environment. The World RevPar increased by 3.3 %, reflecting the solidity of our diversified global presence and the growth of each of our three demand engines: business trips, leisure and groups, “said Elie Maalouf, CEO.
The manufacturers of drugs weighed on the FTSE 100. GSK fell 1.1 % and Astrazeneca by 2.3 %. The two companies had already dropped on Wednesday due to concerns related to customs duties in the pharmaceutical sector.
Among the values of the FTSE 250, the creditor Metro Bank increased by 3.3 %. He said he was “profitable both on an underlying and statutory basis” in the first quarter of 2025.
It indicated a “significant increase” of its underlying benefit in the first quarter compared to the second half, thanks to a “structurally higher margin of interest”.
“During the first quarter of 2025, we continued the strategic repositioning of Metro Bank’s activities, maintaining a rigorous cost control while increasing the margin of net interest thanks to a modification of the composition of our assets and a rigorous management of deposits,” said CEO Daniel Frumkin.
“We have noticed new growth in our loans to businesses and businesses, thanks to the banking relationship and the Metro Bank range of services which allow us to differentiate ourselves on the market. In the future, we will continue to play an important role by supporting our customers while the United Kingdom focuses on economic growth. We are firmly committed to achieving the objectives that we have set for the whole year. »»
Elsewhere, Flutter Entertainment fell 2.5 %, after having published mixed forecasts for the entire year 2025. The owner of Paddy Power noted his turnover forecasts, with $ 15.48 billion to $ 16.63 billion, compared to $ 17.53 billion.
However, it has revised its profit forecasts before interest, taxes, depreciation and depreciation to the United States, bringing them from $ 1.19 billion to $ 1.25 billion.
He reported “unfavorable” results linked to March Madness, a university basketball tournament in the United States.
The Entain actions, owner of Ladbrokes, dropped by 0.8 % in a general negative context.
Brent’s barrel fell slightly on Thursday morning, going from $ 61.45 Wednesday evening to $ 61.40. The gold was exchanged at $ 3,348.61 per ounce, down compared to 3,386.18 dollars.
By Eric Cunha, editor -in -chief of Alliance News
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