(Alliance News) – Share prices in London closed higher on Wednesday, with the FTSE 100 index hitting a new record high and markets in a confident mood ahead of Thursday’s Bank of England decision.
The FTSE 100 index closed up 40.38 points, or 0.5%, at 8,354.05, a new record. The FTSE 250 finished up 78.91 points, or 0.4%, at 20,491.99, and the AIM All-Share closed up 3.41 points, or 0.4%, at 779. .83.
The Cboe UK 100 rose 0.4% to 833.82, the Cboe UK 250 added 0.5% to 17,748.81, and the Cboe Small Companies rose 0.8% to 15,999.21.
In Europe, the CAC 40 increased by 0.7% in Paris and the DAX 40 by 0.4% in Frankfurt.
In New York, the Dow Jones Industrial Average was up 0.2% as trading closed in London. The S&P 500 was down 0.1%, while the Nasdaq Composite lost 0.2%.
“The market appears to be positioning itself for a dovish tilt from the BOE ahead of Thursday. GBP/USD is below $1.25, UK 10-year Gilt yields are down 15 basis points at over the past week, and 2-year yields have fallen 20 basis points over the past week. The FTSE 100, which tends to move inversely to the pound, hit a new record high on Tuesday and outperformed. European and US indices over the past month, the FTSE 250, which is a more domestic index, has tracked the FTSE 100, as it benefits from the prospect of lower borrowing costs in the UK,” commented Kathleen Brooks. , analyst at XTB.
“Recent speeches by members of the [Comité de politique monétaire] suggest that there is still a range of views within the bank, but that there may be the beginnings of a tilt towards a softening trend. For example, Jonathan Haskel, who voted in favor of raising rates earlier this year, said the timing of a rate cut will depend on the unemployment rate, which is down 30% from its highest level. He also said inflation expectations remained well anchored, suggesting he has modified his hawkish stance. Andrew Bailey, the governor of the Bank of England, said that the UK is going through a process of disinflation at full employment and that this process will continue. New members Megan Greene and Huw Pill said the biggest risk could be cutting rates too soon and then raising them again. Interestingly, no recent speech from a BoE member has spoken of high levels of inflation or the prospect of more immediate rate hikes.”
Sterling was trading at $1.2495 at the close of trading in London on Wednesday, down from $1.2542 on Tuesday. The euro traded at $1.0749, down from $1.0774 at the end of the day on Tuesday. Against the yen, the dollar rose from 154.49 yen to 155.55 yen.
Thursday’s economic calendar forecasts the Bank of England’s decision at midday, ahead of the final reading of US initial job claims at 1330 BST.
In London, British Airways parent International Consolidated Airlines Group rose 3.7%, while easyJet climbed 2.9%. Both airlines struggled on Tuesday after Ryanair’s boss warned about summer ticket prices.
Informa rose 2.3%, after increasing its 2024 share buyback program by 50% to £500 million.
In a market update, the business news publisher and event organizer said all activities were either exceeding or meeting annual targets.
Informa expects 2024 revenue to be at the upper end of its guidance range of £3.45 billion to £3.50 billion, while adjusted operating profit is expected to be at at the upper end of the forecast range of £950 million to £970 million.
Among London midcaps, John Wood Group jumped 17%. The consulting and engineering company for the energy and materials sectors has rejected a new takeover attempt.
John Wood said he had received an “unsolicited, preliminary and conditional” proposal from Dar Al-Handasah Consultants Shair and Partners Holdings Ltd, Sidara, regarding a possible cash offer.
Sidara is a family-owned engineering company, founded in Beirut, with more than 300 offices in 60 countries.
The proposal, received last Tuesday, valued each John Wood share at 205 pence, or around £1.41 billion in total.
John Wood concluded that it “fundamentally undervalued Wood and his future prospects” and unanimously rejected the proposal on Wednesday.
Renishaw gained 4.2%. It said third-quarter revenue improved from the first two quarters of its financial year, but revenue and profit for the first nine months were both down from the previous quarter. ‘last year.
The supplier of manufacturing technologies, analytical instruments and medical devices has therefore lowered its forecasts for the full year.
Renishaw said it expects annual revenues of between £680m and £700m, which is down from previous forecasts of £675m to £715m. It forecast adjusted pre-tax profit of between £122 million and £135 million, down from previous forecasts of £122 million to £147 million.
Among London small caps, STV rose 2.0%, after the television channel operator and content studio said BBC Daytime had ordered new series of antiques show “Antiques Road Trip”, “Celebrity Antiques Road Trip” and “The Traveling Auctioneers” to production company STV Studios, for a total of 56 episodes.
STV said production on a 20-episode third series of “The Traveling Auctioneers” had already begun.
The barrel of Brent was trading at 83.48 USD late Wednesday afternoon, without much change compared to 83.51 USD on Tuesday. Gold was quoted at $2,317.69 an ounce, down from $2,322.59.
The local business calendar includes a trading statement from broadcaster ITV and Paddy Power owner Flutter Entertainment on Thursday.
By Eric Cunha, Editor-in-Chief of Alliance News
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