- FTSE 100 rises 39 points to 7976
- Entain jumps 3.5% on chairman exit
- Miners continue to rally
16.02pm: FTSE 100 to close out higher
The FTSE 100 is on track to close around 35 points higher at 7,972, placing it in the perfect position to attack the 8,000 mark on Friday.
While company updates appear to be few and far between in the week after Easter, Friday will bring with it house price data from Halifax and construction PMI figures – both of which could help the blue-chip index lift higher.
On Thursday, much of the FTSE 100 was buoyed by the continuation of a rally for the mining companies, most of which are benefiting from rosier prospects in China.
Antofagasta surged 3.5%, Anglo American jumped 3% and Fresnillo lifted 2%.
However, the leading riser was Ladbrokes owner Entain, which is 3.5% higher after it announced its chairman would be stepping down.
Ocado also confirmed its chairman would be stepping down after he took the same job at NatWest. Unfortunately for the retailer, the news didn’t have the same effect and shares have slipped close to 4.5%.
Other fallers include St James’s Place, Admiral and Convatec, all of which are down 2%.
15.28pm: Google considers bid for HubSpot
Google is preparing to table an offer for HubSpot, an online marketing software developer.
Alphabet has reportedly spoken and met with advisors at Morgan Stanley (NYSE:MS) over a deal, with the tech giant considering bidding around £25 billion (US$32 billion).
Shares in HubSpot have jumped close to 7% following the news, with its market capitalisation currently sitting at upwards of US$33.7 billion.
Google will have to jump over several regulatory hurdles if it wishes to make the deal a reality, with it facing several antitrust lawsuits already including one accusing it of abusing its dominance as a search engine.
15.00pm: DS Smith bidder promises UK office and London listing
DS Smith bidder has promised to set up a secondary listing in London and situate its European headquarters in the capital should its offer be accepted.
International Paper said if the deal is accepted it would make sure to keep DS Smith’s existing HQ, with “key elements” of the London office being maintained.
The bidder is expected to also “seek a secondary listing of its shares on the London Stock Exchange”.
A £5.7 billion offer was tabled by the Memphis-based company last month, just a few weeks after DS Smith agreed to merge with Mondi in a £5.1 billion deal.
DS Smith shares lifted 1.5%.
14.39pm: US stocks begin trading on front foot
US stocks traded higher at the open on Thursday after having been boosted by dovish statements from Fed chair Jerome Powell.
Nevertheless, a tough start to the week means the leading indexes are on track for a losing week, with the Dow Jones down around 1.7%.
The S&P 500 opened 38 points higher at 5,249, while the Nasdaq shifted upwards by 164 points to 16,442.
The Dow Jones jumped 272 points to 39,399.
Leading the movements in equities was Levi Strauss after its shares jumped 16% on the back of a first-quarter earnings beat for both its revenues and profits.
Wayfair, the e-commerce retailer, jumped 5% after it was upgraded from “in line” to “outperform” by Evercore ISI.
Space stock Intuitive Machines rallied 11% before falling back to near flat despite having won a NASA contract worth US$30 million to develop a lunar terrain vehicle.
14.18pm: Petrol tanker drivers to strike this month
Petrol stations could face disruption later this month after unions representing tanker drivers threatened to walk out.
Unite said its members were prepared to go on strike after transport group JW Suckling “failed to come to the table” to discuss providing better pensions.
JW Suckling employs tanker drivers who deliver petrol to garages.
Members of Unite have now voted in favour of walkouts in their battle for better pay and retirement benefits.
Some 39 drivers across London, the South East and Scotland are expected to take part in continuous industrial action starting from April 16.
While this isn’t expected to cause widespread issues, Unite claims it will lead to some shortages in certain areas.
13.55pm: Tube strikes called off
London Underground strikes set to take place on Monday, April 8 and Saturday, May 4 have been called off, Aslef union confirmed.
After a series of meetings took place between Transport for London and the union, negotiators are said to have resolved the key issues driving the dispiute.
A representative said: “Management have confirmed that they have disbanded their ‘Trains Modernisation’ team and will not be implementing their plans to change drivers’ working arrangements without agreement.
“They have also agreed to reinstate annual refresher training stopped during the pandemic.”
13.30pm: Wall Street to open higher as Fed quells rate cut concerns
US stocks are expected to open higher on Thursday after Fed chair Powell quelled fears surrounding a lack of interest rate cuts.
The Dow Jones is set to lift 127 points at 39,579 when the markets open.
The Nasdaq is expected to jump 93 points to 18,454, while the S&P 500 is touted to begin trading 19 points higher at 5,283.
Investors had shown concern through much of the week about whether the Fed would wait longer to cut rates and whether it would stick to three cuts.
It led to subdued trading throughout much of the week, with markets down on Monday, Tuesday and the start of Wednesday.
13.16pm: Inflation to fall to 1.2%, says HSBC
UK inflation will find itself at 1.2% in June, HSBC said, before warning that it will start to speed up at the end of the year.
HSBC believes the sharp deceleration of inflation will come in summer due to the reduction of the energy price cap by Ofgem at the start of the month.
Inflation soared to a peak of 11.1% in September 2022 before the Bank of England began hiking interest rates to 16-year highs of 5.25%, which helped inflation slide back to 3.4% in February.
While HSBC is predicting a slowdown in inflation, it warned that wage growth and price rises in the services sector could lead to the rate lifting ahead of the Bank of England’s 2% target.
The lender said: “To be clear, we do not see a re-acceleration in cost and price pressures ahead.
“But we are assuming a degree of persistence in our forecast such that, after the energy-driven dip this year, UK inflation will pop back slightly above 2pc later this year, before only reaching the target mark on a more ‘sustainable’ basis next year.”
12.45pm: Ocado shares slip as chairman departs
Ocado shares are down 2% after it said its chairman would be leaving, having started his new role at NatWest earlier this month.
Rick Haythornthwaite, known by some within the City as “Slick Rick”, replaced Howard Davies at the lender in April and has now told Ocado he will not stand for re-election next year, providing time for the retailer to find a replacement.
Howard Davies departed NatWest after he became embroiled in the Nigel Farage debanking scandal, backing former boss Alison Rose just hours before she resigned.
Davies also came under criticism after telling first-time buyers that it wasn’t “that difficult” to get onto the property ladder.
Haythornthwaite said the move was due to his “increasing commitment to NatWest” after realising “that pressure on [his] time is likely to increase over the medium term.”
12.18pm: Bitcoin bounces back from Easter dip
Bitcoin (BTC) bulls are back in the driving seat after a 6% early-week rout sent the world’s largest cryptocurrency down to $64,500.
The dip coincided with a resurgent US dollar after hotter-than-expected US jobs data caused the swap markets to price in fewer interest rate cuts for the year.
But Bitcoin has since stabilised, with the BTC/USD pair adding green candlesticks over the past two days.
At the time of writing, bitcoin was changing hands for around $66,144.
12.02pm: Oil prices hovering at five-month peak
Oil prices have kept at close to five-month highs today as concerns about supply shortages continue to grow.
Brent crude oil is currently worth US$90 a barrel, representing around a 16% jump year-to-date.
It comes after the Opec cartel of oil-producing countries decided it would not be editing its policy, with plans in place to limit oil supplies over the current year.
Additionally, conflict in both Ukraine and the Middle East has heightened fears, while a rebound in global economies is expected to drive up oil demand.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: “At the same time, the US demand outlook looks very healthy and broader supply disruptions from global events continue to add to the anxiety.”
11.46am: Gucci owner in biggest European property purchase since 2022
Gucci’s owner Kering has purchased a retail block in Milan for €1.3 billion, marking Europe’s largest property sale since 2022.
Via Monte Napoleone 8 Source: Kryalos
Via Monte Napoleone 8, which was sold by Blackstone, houses sites for designer brands such as Prada and Saint Laurent.
Kering’s purchase represents a wider trend of luxury companies buying up sites across the globe, particularly in key cities nd where flagship stores are located.
Justifying the buy, the Gucci owner said it was part of a ““selective real estate strategy, aimed at securing key highly desirable locations for its houses”.
11.18am: Thames Water boss to meet with union leaders
Thames Water boss Chris Weston will meet with union leaders, who aim to fight for no job cuts at the embattled utility company.
Representatives from GMB, Unison and Unite will meet with the water company’s boss later today as concerns grow about it slipping back into government hands.
Gary Carter, GMB’s national officer, plans to ensure that “there are no cuts to workforce numbers – or terms and conditions.”
He added: “Any cost-cutting measures being considered by Thames will only be a sticking plaster and will not address the root cause of the company’s problems – a lack of investment by shareholders stretching back decades.”
Thames Water has been under pressure to pay off parts of its 80% leveraged debt pile, with a £190 million loan due to be paid off by the end of April.
Last week, the company failed to drum together a £500 million rescue package from shareholders, making the likelihood of insolvency even more likely.
10.55am: Amazon slashes hundreds of AWS jobs
Amazon is cutting hundreds of jobs in its cloud computing division AWS as it rejigs its strategy.
Some “few hundred roles” will be axed in the team which develops technology for its in-person store.
The company also announced it will be ending the use of its “just walk out” self-service checkouts, which can be found in its grocery stores in the US.
AWS is also slashing several hundred jobs in the division’s marketing, sales and global services teams.
“These decisions are difficult but necessary as we continue to invest, hire and optimise resources to deliver innovation for our customers,” AWS said in a statement.
10.19am: New EV sales slump in March
Electric vehicles lost market share in the wider car sector in March, new data revealed.
It prompted the UK’s industry body to ask the government for support through offering incentives for buyers.
New EV car registrations accounted for 15.2% of the total figure, down from 16.2% in 2023, the Society of Motor Manufacturers and Traders (SMMT) said.
SMMT chief executive Mike Hawes said: “Manufacturers are providing compelling offers, but they can’t single-handedly fund the transition indefinitely.
“Government support for private consumers – not just business and fleets – would send a positive message and deliver a faster, fairer transition on time and on target.”
9.49am: UK service sector grows slower than expected
Britain’s services industry saw its output slow more than expected in March, providing new leverage for those pushing for earlier rate cuts.
S&P Global’s services PMI came in at 53.1 in March, down from February’s 53.8 and lower than the market’s forecast of 53.4.
It marks the slowest expansion in the last four months.
“On the price front, input cost inflation remained broadly stable from the higher levels in the past six months, mostly due to rising salary payments, alongside increased fuel and transportation costs,” S&P Global explained.
The FTSE 100 has held onto its early morning gains following the release and is sitting around 28 points up at 7,965.
9.24am: Entain appoints interim CEO as chair
Entain has confirmed its interim chief executive Stella David will take over as chairperson at the betting giant later this year.
Current chairman Barry Gibson said he will be retiring at the end of September but could step down earlier if a permanent CEO is found.
Jette Nygaard-Andersen stepped down from the chief executive position at the end of last year after three years in the role.
Entain struggled under Nygaard-Andersen, its share price sunk 65% since 2021 and regulators fined the group £585 million for a Turkish bribery scandal.
Shares in Entain are up 2% at 774p.
9.04am: Google to charge for AI, Trump sues social partners
Some titbits from the US this morning.
Google is reportedly exploring the possibility of introducing a subscription-based model for AI content, marking a potential shift from its traditionally free services, according to a FT report.
The Alphabet Inc-owned search giant might integrate advanced AI search features into its premium services, including the newly introduced AI assistant, Gemini, which could place select AI-powered functionalities behind a paywall, a first for Google’s content.
Elsewhere, Amazon.com Inc is axing workers at its Amazon Web Services (AWS) division, with job losses running into the ‘hundreds’, according to reports from the US.
And Donald Trump is suing the co-founders of the Trump Media & Technology Group Corp (NASDAQ:DJT), the parent company of Truth Social, for mismanagement, seeking to revoke their company shares valued at about $600 million.
8.49am: Vodafone UK merger with Three probed
Vodafone’s proposed merger with UK rival Three is being sent for a full competition probe after the companies offered no solutions to ease the competition watchdog’s concerns over the potential for higher prices
Last month, the Competition & Markets Authority said the £19 billion deal might leave consumers “considerably worse off” and asked the companies to come up with “meaningful solutions” to answer its concerns.
But today it said both parties informed it “that they would not be offering any undertakings”.
As a result, the CMA said it has referred the anticipated joint venture between Vodafone and CK Hutchison Holdings for an in-depth investigation.
8.37am: Markets moves all about rates watching
Financial markets are continuing to be held sway by “interest rate intrigue” says market analyst Richard Hunter at Interactive Investor, with the many variables leading investor sentiment in different directions.
The FTSE 100 has been boosted by commodities strength, which he says is based on a number of factors, such as a possible recovery of demand from China which has boosted the likes of copper and followed through to the mining sector.
Meanwhile, the oil price is now up by 16% this year with the latest potential for further geopolitical tensions and supply disruptions giving firm support for the price, with Brent having neared $90 overnight but easing to $89.33 this morning. Shell and BP shares both started slightly lower.
“Having briefly flirted around record levels earlier in the week, the FTSE 100 has subsequently given up some of those gains although the index remains up by 2.8% so far this year,” Hunter says.
“The strength of commodity stocks has had a positive impact over recent days, although on an overall valuation basis the UK as a whole continues to significantly trail many of its global peers.
“However, the imminent path of interest rates remains core to investor sentiment globally, in terms of both the number and the timing of any such easing.
“Only last week there was an increasing conviction that rate cuts from the Fed, ECB and Bank of England would converge and all take place in June.
“Since then, the possibility of the ECB moving first has been accompanied by increasing debate over whether the other two central banks may delay their first move.”
8.22am: FTSE 100 starts higher
The FTSE 100 has opened higher, continuing the positive momentum that crept back towards the end of yesterday’s session.
In opening trades, the blue-chip index rose 18 points to almost 7955, while the FTSE 250 is up 29 points at 19,783.
Precious metals miner Fresnillo again is top of the risers, with a selection of miners, banks and financials behind.
Some internet-related stocks are also on the blue-chip leaderboard, such as Auto Trader PLC and Rightmove, perhaps on the back of the news from Future earlier.
Future PLC (LSE:FUTR) is leading the FTSE 250 pack, up 12.5% after its more encouraging update earlier, where it reported a return to organic revenue growth in the past quarter and said it is “on track” to meet full-year expectations.
Footsie fallers are led by Mondi PLC (LSE:MNDI), down 2.8% as its shares go ex-dividend today – and not necessarily a sign that investors are unhappy with the news that merger talks are making progress with DS Smith.
Overall, ex-dividends are reducing the FTSE by 2.2 points, with InterContinental Hotels, IMI, Rentokil Initial and Smiths Group the others.
Ocado Group PLC (LSE:OCDO) is down 2.1% after it said that chair Rick Haythornthwaite is stepping down after being appointed to the same role at NatWest.Haythornthwaite said: “With the benefit of time and greater visibility of the expected growth in requirements of the publicly-listed portfolio, it has become evident that pressure on my time is likely to increase over the medium term.”
8am: DS Smith and Mondi merger talks continue
DS Smith PLC (LSE:SMDS), which last month agreed a £10 billion merger with fellow paper and packaging group Mondi, before later receiving a higher bid from US rival International Paper, said it has now reached a new agreement with Mondi.
An agreement in principle has been made on a possible all-share offer by Mondi, where the South African group would acquire the entire share capital of DS Smith.
Accordingly, the put-up-or-shut-up (PUSU) deadline has been extended to 5pm on 23 April to iron out more details (or wait for a bigger offer from the Americans).
“DS Smith is continuing discussions with Mondi regarding the combination,” it said in a statement, noting that there was no certainty that any firm offer will be made.
7.55am: Dowlais £50m buyback, Ascential details on £850m return
Elsewhere among the big and mid caps, Dowlais Group PLC (LSE:DWL), which was spun out of Melrose a year ago, says it is launching a £50 million share buy-back programme today.
In the announcement, Chairman Simon Mackenzie Smith says: “The commencement of the £50 million share buyback today forms part of the board’s focus to maximise the full value of our group, and its businesses, by considering all available options. Our confidence in delivering significant value from Dowlais derives from each of our two market leading businesses, GKN Automotive and Powder Metallurgy, having strong fundamentals.”
Elsewhere, Ascential PLC (LSE:ASCL) has more details on the £850 million it has promised to shell out to shareholders after selling two businesses last year.
Last month it said it planned to return the cash to shareholders through a tender offer to acquire up to £300 million of its shares, a special dividend of at least £450 million and a £100 million share buyback.
Today’s announcement confirms the price at which it will make the tender offer, which is between 315p and 331p per share, a premium of 4.7-10% to the closing price the day before the March announcement and 3.6-8.9% to yesterday’s closing price.
And if the tender offer is undersubscribed or does not take place, the board said it intends to increase the size of the special dividend to make up the difference.
7.33am: Future reassures on growth
There’s a few bits of FTSE 350 company news this morning, including a trading update from publisher Future PLC (LSE:FUTR), which reports a return to organic revenue growth in the past quarter and that it is “on track” to meet full year expectations.
A strong performance from its Go.Compare price comparison site has been key to the progress, as has a “resilient” performance from magazines, where the group’s brands range from Marie Claire and The Week to Tech Radar and Guitar World.
More challenging has been the market for digital advertising and affiliate products, which the company put down to the effects of “macroeconomic pressures and low visibility” continuing to impact the wider sector, though US direct advertising has been stronger.
Website user numbers have continued to see “broad” stabilisation in the second quarter but remained down year-on-year.
Future said it remains “highly cash generative” with cash conversion strong in the first half.
7.16am: FTSE to continue fight-back
The FTSE 100 is anticipated to crawl higher on Thursday, after battling back from losses yesterday and a mixed close on Wall Street overnight.
After topping 8,000 earlier in the week London’s top equity benchmark tumbled over 115 points, and was down over 50 points yesterday before fighting back into the green by the close at 7,937.44.
Today it is seen rising 7.5 points, according to spread-betting platforms. There will be a 2.2-point impact from stocks going ex-dividend.
Overnight, US stocks mostly finished below their best levels, with the Dow Jones dipping 0.1% but the S&P 500 inching up 0.1% and the Nasdaq 0.2% higher, with most of the tech megacaps in positive territory, Nvidia and Microsoft being the exceptions.
“Federal Reserve (Fed) Chair Jerome Powell reiterated yesterday that the Fed is not in a rush to cut rates but that it will cut sometime this year and that the recent jump in inflation didn’t ‘materially’ change their policy outlook. The latter was enough to send the market higher with joy,” said market analyst Ipek Ozkardeskaya at Swissquote Bank.
In addition, Powell reiterated that if “the economy evolves broadly as we expect, most FOMC participants see it as likely to be appropriate to begin lowering the policy rate at some point this year.”
Analysts said that helped to validate market pricing, which still expects 71 basis points of rate cuts from the Fed by the end of the year.
Back in the UK, this morning we will have services PMI data, which will also give a reading on inflation on this key sector.
There’s also euro factory gate inflation, US weekly initial jobless claims and the February trade balance.
Central bank speakers include the Fed’s Harker, Barkin, Goolsbee, Mester, Kashkari, Musalem and Kugler. And the ECB’s account of their March meeting.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
