(Alliance News) – The FTSE 100 was higher on Thursday afternoon, after the Bank of England kept the UK’s benchmark interest rate at 5.25%, albeit with a split vote that encourages rate reduction expectations.
Threadneedle Street has kept the bank rate at its highest level in 16 years for the sixth meeting in a row. However, two members of its monetary policy committee came out in favor of a 25 basis point cut. Seven members, including Governor Andrew Bailey, spoke in favor of maintaining it.
Sterling was trading at $1.2458 at midday on Thursday, down from $1.2495 at the close of London stock markets on Wednesday, and down from $1.2488 just before the decision. of the BoE.
The BoE said: “Headline CPI inflation has continued to fall, partly due to base effects and external effects in goods prices. The restrictive monetary policy stance is weighing on consumer activity. the real economy, leads to a slackening of the labor market and weighs on inflationary pressures. The main indicators of the persistence of inflation are moderating overall as expected, even if they remain high.
The FTSE 100 index was up 37.96 points, or 0.5 per cent, at 8,392.01 points. The FTSE 250 was up 37.15 points, or 0.2%, at 20,529.14, and the AIM All-Share was up 2.43 points, or 0.3%, at 782.26 .
The Cboe UK 100 was up 0.5% at 838.19, the Cboe UK 250 was up 0.3% at 17,806.89, and the Cboe Small Companies was up 0.5% at 16 076.45.
In Europe, the CAC 40 in Paris was down slightly, while the DAX 40 in Frankfurt was up 0.4%, hitting a record high.
The euro was trading at $1.0736 at midday Thursday, down from $1.0749 late Wednesday. Against the yen, the dollar traded at 155.90 yen against 155.55 yen.
In the FTSE 100, BAE Systems rose 0.7%.
The aerospace and defense equipment maker said revenue was in line with expectations, supported by increased defense spending.
In a statement ahead of its annual general meeting, chief executive Charles Woodburn said: “Operating performance continues to be strong and our order book and ongoing programs underline our confidence in our long-term value creation model. “.
BAE Systems said its guidance for the full year 2024 remained unchanged. It expects sales growth in 2024 of 10-12% from £25.28 billion in 2023, and underlying earnings before interest and tax growth of 11-13% from £2.68 billion. Underlying earnings per share are expected to rise 6-8% from 63.2 pence in 2023.
In the FTSE 250, Harbor Energy rose 6.9%.
The oil and gas company said first-quarter production averaged 172,000 barrels of oil equivalent per day, down from 202,000 barrels a year earlier.
It proposed a final dividend of 13 US cents, up from 12 cents the previous year, in line with its annual dividend policy of US$200 million and representing growth of around 9% on the year. former.
Linda Cook, Chief Executive Officer of Harbor Energy, commented: “During the first quarter, we continued to deliver safe and responsible operations, maximize the value of our UK production base and advancing our organic growth plans At the same time, we have made significant progress towards completing the acquisition of Wintershall Dea, which will transform our portfolio and capital structure and support improved and sustainable shareholder returns. “.
Among London small caps, Avon Protection rose 2.9%.
The personal protective equipment company said it had won a contract from the UK Ministry of Defense worth £38 million for the ongoing supply of general purpose respirators and associated in-service support.
The contract is for a period of four years, with five additional 12-month option periods.
On the London AIM market, Robinson jumped 20%.
The plastic and cardboard packaging maker said it was in “advanced discussions” about appointing a new chief executive, following an “extensive search process with a leading recruitment agency”.
In August last year, the company announced that Helene Roberts would step down as CEO in September, and that independent non-executive director Sara Halton would step in in the interim while the company searched for a new CEO.
Meanwhile, in a trading update, Robinson said the momentum it experienced in the second half of 2023 has continued into 2024.
Sales volumes for the first four months of 2024 are up 12% compared to the previous year. With the effect of sales prices and exchange rate movements, total turnover increased by 8%.
Looking ahead, the company expects 2024 revenue and profit to be higher than 2023 and current market expectations.
In New York, stocks were reported to be falling. The Dow Jones Industrial Average and S&P 500 each fell 0.1%, and the Nasdaq Composite fell 0.2%.
A barrel of Brent oil was trading at USD 84.22 at midday on Thursday, up from USD 83.48 at the end of the day on Wednesday.
Two senior Israeli officials have criticized US President Joe Biden for threatening to cut off some arms deliveries to Israel if it invades the crowded Gaza town of Rafah.
Israel defied international objections by sending tanks and carrying out “targeted raids” in eastern areas of Rafah.
He says Rafah is home to the last Hamas battalions, but the town, located on the border with Egypt, is also crowded with displaced Palestinian civilians.
“If they go into Rafah, I will not provide the weapons that were used to deal with the cities,” Mr. Biden told CNN, in his harshest warning to Israel since the start of the war.
“Civilians have been killed in Gaza because of these bombs,” Mr. Biden added. “This is simply unacceptable.
Israel’s Ambassador to the United Nations, Gilad Erdan, said Mr Biden’s comments would be interpreted by Israel’s enemies Iran, Hamas and Hezbollah as “something that gives them the hope of success.
Gold was trading at $2,310.71 an ounce at midday on Thursday, down from Wednesday’s $2,317.69.
Coming up in Thursday’s economic calendar, the latest US unemployment figures are released at 1330 BST.
By Greg Rosenvinge, Alliance News senior reporter
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