Tag: NatWest

  • FTSE 100 Reaches All-Time High as Earnings and Energy Stocks Fuel July Rally

    FTSE 100 Reaches All-Time High as Earnings and Energy Stocks Fuel July Rally

    London’s FTSE 100 surged to a new intraday record on Friday, propelled by robust corporate earnings and gains in energy and mining stocks. The benchmark index climbed 0.5% to 10,947.73 points by 1003 GMT, marking its strongest monthly performance since February. The mid-cap FTSE 250 also advanced 0.4% during the session.

    Investors focused on a wave of corporate results, following a week that included key central bank decisions and ongoing geopolitical tensions in the Middle East. Strong earnings from several UK-listed companies buoyed market sentiment.

    Mining and Energy Stocks Lead Gains

    Mining shares were the top performers on Friday, with industrial metal miners jumping 2.1% as copper prices rose. Precious metal miners added 0.9%. Energy stocks also provided significant support, with the sector gaining over 15% in July, making it one of the strongest on the index. Heavyweight energy companies added 1.4% on Friday despite oil prices dipping below $90 per barrel, as concerns over potential fuel supply disruptions linked to US-Iran tensions kept the sector in focus.

    Banking Sector Boosted by NatWest Results

    Banking stocks contributed to the broader market recovery. NatWest shares climbed 4.3% after the lender reported first-half operating profit before tax of £4.3 billion ($5.8 billion) and raised its full-year outlook. The positive update lifted the financial sector.

    Corporate Earnings Drive Investor Activity

    UK companies continued to release quarterly and half-year results, with investors closely monitoring earnings and economic data. IG Group shares fell 10.2% after the company agreed to acquire US daily fantasy sports and prediction markets operator Underdog for up to $1.3 billion. In contrast, Sainsbury’s shares rose 2.5% following the sale of Argos for at least £120 million ($161 million). Airline group IAG also reported results, with analysts noting cost controls and lower-than-expected fuel expenses supported its performance.

    Central Bank Decisions and Global Markets

    The market moves followed decisions from the Federal Reserve and the Bank of England, both of which kept interest rates unchanged. The Fed offered limited guidance on future rate adjustments, while the BoE saw three policymakers vote against the decision, more than the expected two. Additionally, strong gains in US technology shares improved global market sentiment.

    The FTSE 100 ended the week supported by earnings updates, commodity-linked sectors, and ongoing attention to global economic developments.

  • FTSE 100 Surges 84 Points to 10,981.47 as Global Tech Rally Boosts UK Markets; Brent Oil Drops to $87.88

    FTSE 100 Surges 84 Points to 10,981.47 as Global Tech Rally Boosts UK Markets; Brent Oil Drops to $87.88

    The FTSE 100 opened 84.20 points higher at 10,981.47 on Friday, driven by a global rally sparked by strong Amazon earnings and a broad rebound in technology shares on Wall Street and across Asia. Meanwhile, Brent crude futures fell 1.29% to $87.88 per barrel, and US West Texas Intermediate (WTI) declined 1.71% to $82.16 per barrel.

    Sterling held steady at $1.3440, little changed from $1.3439 in the previous session. Against the euro, the pound edged up to €1.1678 from €1.1671.

    Gainers & Losers

    On the upside, Polar Capital Technology Trust surged 4.42% to 638.50p. NatWest Group gained 3.86% to 710.20p, while IMI advanced 3.53% to 3,050p. Anglo American climbed 3.36% to 3,851p, Antofagasta rose 3.21% to 3,823p, and Sainsbury (J) added 3.01% to 366.40p.

    On the downside, IG Group Holdings declined 6.80% to 1,590p. Pearson dropped 3.17% to 1,251.50p, while RELX slipped 1.65% to 2,631p. Unilever eased 1.43% to 4,780.50p, Reckitt Benckiser fell 0.87% to 5,254p, and London Stock Exchange Group edged 0.74% lower to 8,542p.

    Interest Rates Hit Housing Market

    The UK housing market’s summer slowdown extended into July as geopolitical uncertainty continued to pressure interest rates and energy prices. Annual house price growth slowed to 1.8% in July, down from 2.2% the previous month. The average price fell by £551.1 during the month to £277,542, according to the latest Nationwide house price index.

    IAG Shares Decline

    British Airways owner IAG dropped more than 4% to 419p after reporting a 16% decline in profit to €1.4 billion, hurt by soaring fuel prices following disruptions to the oil market from the Iran conflict. Mark Crouch, market analyst at eToro, noted the airline’s resilience: “Higher fuel prices, disruption linked to the Middle East conflict and lower-than-planned capacity all weighed on second-quarter profits, but strong demand for travel and disciplined cost control helped the group preserve one of the strongest margins in the sector. Clear skies are far from guaranteed, particularly if fuel prices remain elevated or geopolitical tensions intensify. However, with bookings holding up and shareholder returns continuing, IAG appears well positioned to keep flying above much of the industry’s turbulence.”

    Intertek Revenue Jumps

    Intertek reported a 6% rise in first-half revenue to £1.8 billion, driven by new acquisitions and strong performance in its corporate assurance business. Pre-tax profit climbed 14% to £145.5 million. Growth was fueled by a 10% revenue increase in the corporate assurance arm and a 6% rise in its health and safety division. Last month, the firm agreed to an £11 billion takeover by Swedish buyout firm EQT.

    Global Market View

    In the US, the Nasdaq surged 2.8% as tech stocks led a comeback, while the S&P 500 climbed 1.7% and the Dow added 1.2%. In Asia on Friday, Tokyo’s Nikkei 225 jumped 4.03% to 64,362.02, China’s Shanghai Composite gained 0.72%, Hong Kong’s Hang Seng advanced 0.12%, and South Korea’s Kospi edged higher. In India, both the Nifty 50 and the Sensex rose modestly.

  • FTSE 100 Opens Lower at 10,493 as Cautious Sentiment, BoE Inflation Warning, and Corporate News Weigh

    FTSE 100 Opens Lower at 10,493 as Cautious Sentiment, BoE Inflation Warning, and Corporate News Weigh

    The FTSE 100 opened more than 4 points lower at 10,493 on July 1, as cautious investor sentiment marked the start of a new quarter. Fresh commentary from Bank of England Governor Andrew Bailey on the inflation outlook added to the subdued mood. Meanwhile, Brent crude futures rose 0.40% to $73.24 a barrel, and US West Texas Intermediate (WTI) gained 0.40% to $69.78 a barrel.

    Gainers & Losers

    On the upside: Babcock International Group rose 3.13% to £981.60, Sainsbury’s advanced 1.47% to £324.50, BAE Systems gained 1.44% to £1,870.50, and IG Group Holdings moved higher by 1.38% to £1,843. Melrose Industries added 1.37% to £481.40, while Tesco climbed 1.20% to £464.20.

    On the downside: Associated British Foods declined 3.27% to £1,921, Fresnillo slipped 1.79% to £2,692, Lion Finance Group fell 1.32% to £11,180, and Games Workshop moved lower by 1.20% to £21,340. Rio Tinto eased 0.77% to £7,067, while London Stock Exchange Group edged down 0.59% to £8,114.

    BoE Governor Commentary

    Bank of England Governor Andrew Bailey told CNBC that the Bank “would have been back at our 2.0 target around about April, May time,” calling the fact that it hasn’t been “hugely frustrating.” Asked by CNBC’s Sara Eisen if the delay was “all because of the war,” Bailey replied, “I think so, yes.” UK inflation stands at 2.8% and is expected to rise toward 3.2% later this year due to lagged energy-price effects. “It’s going to take longer,” Bailey said of the return to target, pointing to a softening economy and soft labour market as reasons the MPC can afford patience.

    BP Deputy Chief Quits

    BP’s deputy chief executive Carol Howle quit her job after just months into the role, the energy giant confirmed late yesterday. HR vice president Kerry Dryburgh is also leaving after 16 years. Albert Manifold was infamously dismissed as chairman by the board last month, less than a year into his role over “serious concerns” about his behaviour. Manifold has hit back disputing the allegations.

    NatWest Acquires Evelyn Partners

    NatWest says it expects to lift fee income by about 20%, improve returns, and increase its exposure to the UK wealth market after completing its £2.7 billion acquisition of Evelyn Partners yesterday. The lender said the deal creates the UK’s biggest private banking and wealth management business, with £127 billion of assets under management and administration as of the end of last year. NatWest also expects annual cost savings of about £100 million, though it faces one-off costs of about £150 million to deliver them.

    Topps Tiles Shares Fall

    Topps Tiles shares fell 8% in early trade after its third-quarter update, where its profit target was trimmed. Revenue fell by 1.8% lower than the year prior at £75.6 million. It added that it expects pre-tax profit to come in at around £6.5 million, “well below the already modest growth previously flagged,” according to Adam Vettese, market analyst at eToro. Vettese added, “The market reacted sharply to the combination of softer than expected trading and the profit warning. Although Topps continued to outperform a wider home improvement market that declined around 1.6% and digital penetration rose strongly to 23.3%, these positives were not enough to offset the earnings disappointment.”

    Global Market View

    In the US, Wall Street ended its best quarter since 2020, with the Dow Jones adding 0.3% to a fresh high above 52,300, while the Nasdaq jumped 1.5% and the S&P 500 climbed 0.8%. In Asia, South Korea’s Kospi fell 2.04% to 8,303.41. Japan’s Nikkei 225 rose 0.59% to 70,474.96 points. Taiwan’s TAIEX advanced 1.94%. India’s Nifty 50 and Sensex both rose 0.63% and 0.75%, respectively.

    Disclaimer: This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research before making any investments.