FTSE Today: London markets rally on central bank dovishness
FTSE 100 surges as Fed signals rate cuts, BoE policymakers drop hawkish bias.
The FTSE 100 index soared 1.9% to 7,882.55 on Thursday, as UK markets cheered dovish signals from both the US Federal Reserve and Bank of England. The Fed statement suggested a trio of rate cuts will materialise this year, boosting US tech shares. Meanwhile, some BoE policymakers dropped their hawkish bias, propelling housebuilders like Berkeley Group, which closed up 3.7%.
Next shares jumped 6.7% after the retailer reported a 17% rise in statutory pretax profit to £1.02 billion for the 52 weeks to January 27, aided by a £109 million exceptional gain from the Reiss acquisition. Next's total group sales climbed 5.9% to £5.84 billion, with full-price sales up 4%.
The FTSE 250 advanced 1.3% to 19,741.31, though Dowlais plunged 9.9%. The automotive engineering firm's pretax loss widened to £522 million due to a £449 million goodwill impairment, despite a 5.7% revenue increase to £4.86 billion.
Games Workshop Group rose 2.3% after hiking its dividend to £4.20 per share amid record sales and profits for the financial year 2024.
On the AIM, XLMedia more than doubled to 13.50 pence after agreeing to sell its Europe and Canada sports betting assets to Gambling.com for up to $42.5 million. The AIM All-Share climbed 0.7% to 740.64.
Daily Risers and Fallers
Pollen Street 12.4%, 3i Group 8.7%, Hochschild 8%, Next 6.6%, Future 5.8%.
Aptitude -16.4%, Dowlais -9.7%, Petra Diamonds -5.8%, CLS Holdings -5.5%, Hostelworld -5.3%.
Daily Recap
- Games Workshop marches on with solid Q3 trading
- London stock market in 'doom spiral' as companies flock to New York
- Direct Line revs up against takeover bid with £100 million efficiency drive
- M&G profit soars, announces increased dividend
- GBP/USD: BoE under pressure as inflation cools
- Nationwide seals £2.9bn Virgin Money takeover deal
- USD/CHF: SNB stuns markets with surprise rate cut, Franc tumbles
- Next upholds profit outlook despite uncertain climate
- Reddit share sale values social media firm at $6.4bn
- USD/JPY: Yen bounces back as BOJ, Fed policy paths diverge
- Gold hits record high as Fed signals potential rate cuts
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