London stocks opened higher on Wednesday, supported by optimism over US rate cuts and upbeat tech earnings, even as geopolitical tensions dominated headlines.
The FTSE 100 rose 0.3% to 9,266.18, the FTSE 250 gained 0.2% to 21,645.54, while the AIM All-Share slipped 0.4% to 765.29.
Wall Street closed stronger on Tuesday, with the Dow up 0.4%, the S&P 500 rising 0.3% and the Nasdaq climbing 0.4%. Sentiment was lifted by Oracle, whose shares leapt 28% in after-hours trading after forecasting buoyant cloud sales despite quarterly revenue missing forecasts. Investors are also betting on the Federal Reserve cutting rates by as much as 150 basis points over the next nine months.
Geopolitical risks remained in the background. The White House distanced itself from Israeli strikes in Doha, while Poland scrambled jets and fired on “hostile objects” that entered its airspace during a Russian assault on Ukraine.
In London, Associated British Foods was the morning’s worst FTSE 100 performer, slumping 10% after warning of weak sales at Primark and fresh struggles in its sugar unit. Haleon gained 2.8% as Goldman Sachs upgraded the stock to ‘buy’.
The Gym Group jumped 9% after reporting half-year pretax profit of £3.3 million, up from £200,000 last year, alongside higher revenue and record member visits. CEO Will Orr said the chain is on track to expand beyond 250 sites this year, all funded by free cash flow.
Serica Energy sank 14% after cutting its annual production guidance, citing vibration issues at its Triton asset and further planned maintenance.