FTSE climbs despite BP's profit miss; market optimism prevails

London’s stock markets opened on a positive note for the second consecutive day, defying BP’s profit miss and share price decline. The FTSE 100 index edged up by 0.2% to 7,338.15 points. Despite BP’s setback, the overall trading sentiment in Europe and the US has bolstered market confidence.

In the FTSE 100, BP saw a 5.2% decline in its shares after announcing a $1.5 billion share buyback for Q3, missing market forecasts. The replacement cost profit dropped to $3.29 billion from $8.15 billion, below the expected $4.01 billion. However, BP cited higher refining margins, robust oil trading, and increased oil and gas production as contributing factors.

Meanwhile, Shell saw a 1.0% decrease in early trading following BP’s announcement.

Vodafone and Zegona Communications struck a €5 billion deal for the sale of Vodafone’s Spanish operations. Vodafone’s CEO, Margherita Della Valle, stated that the sale aimed to optimize the company’s portfolio for sustainable growth.

In the FTSE 250, IG Group saw a 2.7% rise as it initiated a cost-saving initiative, aiming to become a ‘lean fintech company.’ The move involved laying off 10% of its workforce and implementing efficiency measures, with expected cost savings of £50 million per year.