FTSE 100 Ends Thursday Up on Positive Inflation News
01 December 2023 - 4:27AM
Dow Jones News
The FTSE 100 ended Thursday up 0.41%, rising alongside European
peers after more good inflation news bolstered markets. While the
Fed continues to make progress in the fight against inflation,
fresh signs of weakening prices in the Eurozone have given stocks a
lift on this side of the Atlantic, too, IG Group chief market
analyst Chris Beauchamp said in a research note. "In both cases,
the effect has been to bring forward the expected date of the first
rate cuts, providing more hope that 2023's era of higher rates will
be left behind in 2024," Beauchamp said.
COMPANIES NEWS:
Mulberry Calls for Return of Tax-Free Shopping to Tackle
Dampened Consumer Sentiment
Mulberry Group urged policy makers to reinstate tax-free
shopping in the U.K. in order to counter a deteriorating
macroeconomic backdrop and the knock-on effect on consumer
sentiment, as it reported a widened pretax loss on increased
investments.
---
Dr. Martens Sees Lower Full-Year Revenue, Profit on Challenging
Backdrop
Dr. Martens said that it sees revenue and profit for fiscal 2024
falling as its performance is taking a hit from the challenging
consumer environment in the U.S., leading to mixed trading in the
second half so far after a weaker first-half.
---
Mitchells & Butlers Swings to Pretax Loss Despite Revenue
Rise
Mitchells & Butlers has reported a swing to pretax loss for
fiscal 2023 after booking a number of one-off charges, and despite
revenue rising on the back of strong performances from all its
brands.
---
Metro Bank to Cut 20% of Jobs as Cost-Saving Plan Expanded
Metro Bank Holdings said it is set to cut a fifth of its staff,
expanding its cost-reduction plan.
---
Dr. Martens Shares Fall After Guidance Cut Amid Slow US
Recovery
Dr. Martens shares slip after the group cut its fiscal 2024
targets on the back of a slower-than-anticipated recovery in the
U.S. market.
---
BP to Buy Remaining Stake in Solar Power Joint Venture for
GBP254 Mln
BP said it will buy the remaining 50% stake in its solar power
joint venture Lightsource BP for 254 million pounds ($322.4
million), as the company moves to strengthen its renewable energy
capacity.
---
BP Likely to Appoint CEO in First Quarter, Reuters Reports
-- BP is likely to appoint its new chief executive in the first
quarter, potentially coinciding with the energy major's full-year
earnings in February, Reuters reports citing sources.
MARKET TALK:
Central Banks Likely to Be Careful With Rate Cuts Despite
Slowing Inflation
1239 GMT - The disinflationary trend--or slowing of
inflation--is set to continue in 2024, but central banks will
remain cautious in starting interest-rate cuts, Santander Wealth
Management & Insurance says in an outlook for 2024. The most
concerning aspect of the price stabilization process lies in the
services component, where inflation is being more persistent due to
the tightness of the labor market and the shift in consumer demand
from goods to services, it says. "This means that the U.S. Federal
Reserve, the European Central Bank and the Bank of England will
continue to favor a policy of high interest rates for longer, in
order to allow the delayed impact of rate hikes to be reflected in
the economy," it says. (emese.bartha@wsj.com)
---
Drax's North America Expansion Seen Validated by Canada
Support
1141 GMT - Drax Group's strategic focus on expanding in North
America is validated by Canada showing support for both carbon
capture, utilization and storage and biomass power generations,
Liberum analyst Sam Wahab writes in a research note. The U.K.
power-generation company is targeting 6 million metric tons per
year of carbon removals by 2030 in North America, as the U.S.
regulatory environment is seen as maturing, Wahab says. "The
regulatory environment for bioenergy with carbon capture and
storage in the U.S. ramped up significantly last year, with the
inclusion of BECCS as an eligible technology under the Department
of Energy climate goals funding scheme," he says. Shares are up
0.6% at 440.90 pence. (christian.moess@wsj.com)
---
European Stocks Rise After Eurozone Inflation Slows
1134 GMT - European stocks rise after eurozone inflation eased
by more than expected to 2.4% in November from 2.9% in October.
"The sharp monthly decline in Spanish, German, and French CPI data
over the past 24 hours had led markets to believe we would see
something similar from the wider eurozone inflation gauge today,"
Scope Markets analyst Joshua Mahony writes. "That optimism seems to
have lessened the impact of today's remarkable 2.4% eurozone
inflation reading, with headline CPI now just 0.4% above target."
The Stoxx Europe 600, CAC 40 and DAX gain 0.4% and the FTSE 100
advances 0.5%. Brent crude rallies 0.9% to $83.62 a barrel,
boosting oil shares. IG futures data show the Dow opening at 35600,
versus Wednesday's close of 35430. (philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
November 30, 2023 12:12 ET (17:12 GMT)
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