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UK stocks on the FTSE 100 edged higher on Thursday, with strong gains from Whitbread and Rolls-Royce providing a lift, as market sentiment was bolstered by impressive Big Tech earnings a deal between the US and Ukraine overnight.
The FTSE 100 was up 0.1% at 8,502.10 in morning trade, inching past the 8,500 mark for the first time in four weeks. The last time the index traded at this level was on 2 April – the day Donald Trump unleashed his sweeping tariffs on America’s trade partners and sent global financial markets into a frenzy.
Eagerly awaited results from Wall Street giants Microsoft and Amazon impressed investors overnight as first-quarter numbers topped market forecasts, with shares in both rising strongly in after-hours trading.
“Microsoft and Meta’s better than expected results should help quash any fears that the Magnificent Seven group of tech companies have gone off the boil,” said Dan Coatsworth, investment analyst at AJ Bell.
“The positive market reaction in pre-market trading to Microsoft’s and Meta’s numbers represents a turning point for mega cap tech stocks which have endured a poor showing year-to-date.”
In other news, the Trump administration reached a minerals deal with Kyiv that will see the US invest in the reconstruction of Ukraine in exchange for preferential access to natural resources deals.
“This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term,” said treasury secretary Scott Bessent in a statement.
Thursday is set to be another busy day for economic data, with consumer credit and mortgage approvals due out in the UK, and Challenger job cuts figures, jobless claims and two key manufacturing PMIs scheduled in the US.
Whitbread impresses, Lloyds disappoints
Leisure group Whitbread was a high riser, jumping 4% after announcing a £250m share buyback following its full-year results. The company reported a 19% drop in annual profits but said its five-year plan was still on track.
Lloyds fell after raising its bad debt provision in the first quarter £309m from £57m a year earlier, citing downside risks from the impact of US tariffs. Net income rose 4% to £4.4bn while pre-tax profit fell 7% to £1.5bn as the bank reaffirmed full-year guidance.
Rolls-Royce gained after reporting a “strong” start to the year and saying it expects to be able to offset the hit from US trade tariffs. In a trading update issued ahead of its AGM, the engineer’s chief executive officer said that the company was taking “mitigation actions” with respect to the tariffs.
In contrast, shares in FTSE 250-listed Clarkson slumped after the ship broker issued a profit warning, citing the impact of US tariffs. The company said underlying pre-tax earnings would now be £85m-95m this year, down from £115.3m last year. Clarkson shares tanked in March after it warning that geopolitical and macro challenges would result in lower freight rates and asset values.
A host of stocks were also trading lower after going ex-dividend, including 4Imprint, Centrica and Greggs.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Banco Santander S.a. | +3.82% | +20.00 | 543.00 |
| 2 |  |
International Consolidated Airlines Group S.a. | +3.81% | +9.90 | 269.90 |
| 3 |  |
Informa Plc | +3.74% | +27.20 | 755.00 |
| 4 |  |
Anglo American Plc | +2.93% | +59.50 | 2,088.50 |
| 5 |  |
Scottish Mortgage Investment Trust Plc | +2.73% | +24.60 | 924.40 |
| 6 |  |
Rolls-royce | +2.49% | +18.80 | 773.00 |
| 7 |  |
Carnival Plc | +2.44% | +30.50 | 1,281.00 |
| 8 |  |
Crh Plc | +2.36% | +166.00 | 7,200.00 |
| 9 |  |
Pershing Square Holdings Ltd | +2.25% | +80.00 | 3,640.00 |
| 10 |  |
Bhp Group Limited | +2.23% | +39.50 | 1,813.50 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bp 8%pf | -3.36% | -5.00 | 144.00 |
| 2 |  |
Lloyds Banking Group Plc | -2.43% | -1.78 | 71.50 |
| 3 |  |
Bp Plc | -2.30% | -8.05 | 342.25 |
| 4 |  |
Astrazeneca Plc | -1.68% | -180.00 | 10,548.00 |
| 5 |  |
Shell Plc | -1.54% | -37.50 | 2,403.00 |
| 6 |  |
Bt Group Plc | -1.52% | -2.65 | 171.15 |
| 7 |  |
Centrica Plc | -1.37% | -2.20 | 157.95 |
| 8 |  |
Gsk Plc | -1.31% | -19.50 | 1,464.00 |
| 9 |  |
Phoenix Group Holdings Plc | -0.84% | -5.00 | 592.50 |
| 10 |  |
Severn Trent Plc | -0.79% | -22.00 | 2,768.00 |
US close: Stocks mixed on macro fears after weak GDP data
US stock markets finished mixed on Wednesday, with the Dow and S&P 500 extending their recent rally into the seventh day and the Nasdaq finishing lower, as investors digested gloomy data and a long list of corporate earnings.
Making headlines was the news that the American economy unexpectedly contracted in the first quarter. And with the impact of tariffs likely to be felt from April onwards, odds of a US recession have risen.
“There’s that feeling in your gut and then there’s seeing it in black and white. For investors, the cold hard data that showed the US economy contracted over the first three months of the year was a bit like realising you’ve been sat in a bath for too long,” said AJ Bell’s head of financial analysis Danni Hewson.
“You knew things were getting chilly but you kind of hoped someone would turn on the hot tap before it got too cold.”
US GDP fell at an annualised rate of 0.3% in the first quarter, according to preliminary estimates from the Bureau of Economic Analysis. This was the first year-on-year decline since the start of 2022 and a sharp reversal from the 2.4% growth seen in the fourth quarter. Economists had expected GDP to grow by 0.3%.
While trading in the red for most of the session, a late rally pushed the S&P 500 up 0.2% to 5,569.06. After an 8% gain over the past seven trading days, the index is now within a whisker of its pre-Liberation Day levels.
The Dow, meanwhile, rose 0.4% to 40,669.36, while the Nasdaq slipped 0.1% to 17,446.34. The subdued performance could also have been linked to cautiousness ahead of a flurry of Big Tech earnings, kicking off with Meta Platforms and Microsoft, due to report after the closing bell.
Economic data barrage
Mortgage applications fell 4.2% in the week ended 25 April, according to the Mortgage Bankers Association of America, extending the previous week’s 12.7% drop, which was the sharpest in six months. Pending home sales decreased by 0.6% year-on-year in March, according to the National Association of Realtors, but were up 6.10% month-on-month.
Private sector payrolls rose by 62,000 for the month, the smallest gain since July 2024 and down from 147,000 in March. Consensus estimates had been for an increase of 120,000.
The closely watched personal consumption expenditures price index rose 2.3% year-on-year in March, down from February’s 2.7% increase. Excluding volatile food and energy prices, the PCE price index increased 2.6% from a year earlier.
Still on data, the Institute for Supply Management’s Chicago purchasing managers’ index fell to 44.6 in April, down from 47.6 in the prior month and slightly below analysts’ expectations of 45.5. April’s decrease marked a 17th consecutive monthly decline.
Market movers
Starbucks posted quarterly revenue and earnings that fell short of expectations, causing shares to drop 4%. The global chain also warned of the impact from tariffs and volatile coffee prices.
Profits at heavy equipment manufacturer Caterpillar fell in the first quarter as a result of weaker volumes and pricing, with results coming in worse than expectations. However, the stock edged higher following a 15% slump so far this year.
Etsy shares dropped despite the marketplace beating revenue forecasts in the first quarter as the company swung to a net loss and took a $101.7m impairment charge from the sale of its musical instrument platform Reverb.
Shares in biopharma firm Regulus more than doubled after Swiss giant Novartis announced plans to buy the company for $1.7bn, offering shareholders $7 a share upfront and $7 a share at a later date if certain regulatory milestones are achieved. Regulus’s stock closed Tuesday at just $3.37.
Thursday newspaper round-up: Ukraine-US deal, Microsoft, Tesla…
Ukraine and the US have announced they have reached a vital minerals deal following months of sometimes fraught negotiations. In Washington on Wednesday, the two countries said they signed an agreement on a joint fund to invest in Ukraine’s reconstruction, with a draft saying Washington would get preferential access to new Ukrainian natural resources deals. – The Independent
Microsoft Corporation beat Wall Street’s quarterly sales and profit expectations as customer demand for its cloud computing services remained strong. Overall revenue rose 13 per cent year-on-year to $70.1 billion, ahead of analyst estimates of $68.4 billion. Net income was up 18 per cent to $25.8 billion, surpassing consensus expectations of $24.1 billion. – The Times
Tesla chair Robyn Denholm denied a report that the board was seeking to replace its chief executive Elon Musk in response to plunging sales and a widespread backlash against his alliance with President Donald Trump. “Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company,” Denholm said in a post on the electric vehicle maker’s account on social media platform X early on Thursday morning. “This is absolutely false . . . The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.” – Financial Times
Meta reported earnings on Wednesday, beating Wall Street’s expectations for yet another quarter even as it lavishes billions on artificial intelligence. Meta posted $42.32bn in revenue in the first quarter of 2025, beating both its own quarterly revenue goals of $41.8bn at the higher end and Wall Street expectations of $41.38bn. The company also reported $6.43 in earnings per share, beating Wall Street projections of $5.27. Shares jumped in after-hours trading. – The Guardian
A Microsoft data centre is at the heart of an alleged £3m bribery plot involving two British construction companies. The Serious Fraud Office (SFO) on Monday raided five properties across London, Kent, Surrey and Somerset and made three arrests, as it launched an international investigation into suspected corruption over construction of the site. Officials have accused individuals at Kent-based construction firm Blu-3 of paying more than £3m in bribes to former associates of larger rival Mace Group in relation to the construction of a Microsoft data centre in the Netherlands. – The Telegraph
A London data analytics company led by the billionaire owner of the New Statesman and Wigan Warriors rugby team is in talks with two private equity firms about a takeover offer. GlobalData, which is majority-owned by Mike Danson, the media tycoon, confirmed that it had received a preliminary offer from KKR and Intermediate Capital Group, two private equity investment groups. – The Times
PwC has been accused of launching an “utterly pointless” rebrand after laying off hundreds of staff. The “big four” accountant unveiled a new logo on Tuesday in what it described as its “first global brand update in over a decade”. The new logo uses exactly the same lettering as the old one, while switching out its formerly used multicoloured “butterfly” crest for a simplified version consisting of two orange parallelograms. – The Telegraph
