13th Mar 2025 08:49
(Correcting to change day on first line to Thursday.)
(Alliance News) - London's FTSE 100 was largely flat on Thursday morning, after uncertain overnight trade in Asia, while tech stocks in New York rallied, driven by a softer-than-expected US inflation print.
In Frankfurt, the DAX 40 fell 0.6%, while the CAC 40 in Paris lost 0.2%.
"If we are lucky, the softer-than-expected inflation figures could help taming the inflation expectations that have risen significantly with the tariff walkdown. But the outlook for the US indices remains negative. Funny enough, yesterday's softer-than-expected CPI prints didn't increase the probability of a May cut from the Federal Reserve," Swissquote analyst Ipek Ozkardeskaya commented.
"On the contrary, the chances of a May rate cut implied by activity on Fed funds futures fell to around 30% from around 40% where it stood yesterday morning, before the data release. Add to the mix that the Democrats and Republicans are having hard time agreeing on a spending bill increasing the chances of a government shutdown – one should really look carefully to find a good place to hide in the US equity space."
US President Donald Trump's 25% tariffs on steel and aluminium imports triggered retaliatory action from the EU and Canada on Wednesday.
In early UK corporate news on Thursday, Halma lifted its margin guidance, while Trainline announced a new share buyback. Deliveroo announced a buyback and a swing to profit, but delayed the delivery of a medium-term margin aim.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: mostly unchanged at 8,544.36
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Hang Seng: down 0.6% at 23,462.65
Nikkei 225: closed down 0.1% at 36,790.03
S&P/ASX 200: closed down 0.5% at 7,749.10
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DJIA: closed down 82.55 points, 0.2%, at 41,350.93
S&P 500: closed up 0.5% at 5,599.30
Nasdaq Composite: closed up 1.2% at 17,648.45
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EUR: down at USD1.0879 (USD1.0914)
GBP: down at USD1.2958 (USD1.2978)
USD: down at JPY147.76 (JPY148.32)
Gold: up at USD2,943.33 per ounce (USD2,935.01)
(Brent): up at USD70.97 a barrel (USD70.87)
(changes since previous London equities close)
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ECONOMICS
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Thursday's key economic events still to come:
10:00 GMT eurozone industrial production
09:50 GMT eurozone European Central Bank vice-president Luis de Guindos speaks
11:00 GMT Ireland CPI
12:30 GMT US PPI
12:30 GMT US initial jobless claims
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Momentum in the UK housing market slowed in February amid signs of weakening buyer confidence, according to surveyors. Buyer demand slipped to its weakest levels since November 2023, with a net balance of 14% of property professionals reporting a fall in demand rather than a rise, according to the Royal Institution of Chartered Surveyors. Its survey of professionals indicated that higher stamp duty costs for some home-buyers from April 1 are expected to weaken market activity. Stamp duty applies in England and Northern Ireland. Concerns over interest rates, inflation, and global events also appear to be dampening buyer confidence, the report said. The survey also pointed to the volume of newly-agreed sales falling in February, with London-based professionals reporting a particularly noticeable dip in sales agreed during the month. House prices continued to increase generally in February, but at a more subdued rate, with a smaller net balance of professionals reporting price increases during that month compared with December and January. Looking further ahead, while the market is expected to continue to soften in the short term, the majority of professionals believe house prices will rise over the next 12 months, Rics said, with a net balance of 47% expecting to see an increase. This is broadly in line with price expectations recorded over the past six months, the report said.
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Irish premier Micheal Martin continues his US engagements on Thursday after a mixed day with President Donald Trump which saw the president address a "massive" trade imbalance with Ireland. Trump declared "I love the Irish" at a traditional annual event in which Martin gifted him a bowl of shamrock to mark the deep ties between the US and Ireland. "I'm always struck by the awesome beauty of the Emerald Isle and the strength and warmth and grit and grace of the Irish people," the president told the ceremony which is the centrepiece of the Irish government's major overseas diplomatic push in the run-up to St Patrick's Day. However, a 50-minute exchange in front of reporters at the Oval Office earlier on Wednesday the day allowed Trump to offer some more uncomfortable commentary on Ireland. It came amid heightened concern around the administration's protectionist approach to tariffs and tax, which could pose a significant risk to an Irish economy that is in large part sustained by long-standing investment by US multinationals. The president said he does not want "to do anything to hurt Ireland" but added that the trade relationship between the countries should be focused on "fairness".
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BROKER RATING CHANGES
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HSBC raises Spirax to 'buy' - price target 8,200 pence
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Jefferies reinitiates RHI Magnesita with 'hold' - price target 3,280 pence
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COMPANIES - FTSE 100
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Halma reported "good progress" for the second half of its current financial year to date, putting it on track to deliver its "22nd consecutive year of adjusted profit". Order intake remains ahead of both revenue in the year ahead and the comparable period last year, the life-saving equipment manufacturer added. The firm now expects an adjusted earnings before interest and tax margin "modestly above" 21% for the year ending in March, compared to its prior "around 21%" guidance. Its guidance for constant currency revenue growth is unchanged. "This performance reflects the benefits we derive from the long-term growth drivers in our markets, the diversity of our portfolio, the exceptional talent within our companies and their agility to respond rapidly to changing market conditions," Halma said. The firm will release results for the year due to end March 31 on June 12.
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COMPANIES - FTSE 250
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Trainline intends to launch a further buyback programme for up to GBP75 million, which is due to begin upon completion of its ongoing programme, which has bought back GBP69 million in shares to date. The rail ticketing platform reported that net ticket sales for the year that ended February 28 rose 12% on-year at GBP5.91 billion, while revenue has grown 11% to GBP442 million from GBP397 million. The statement comes ahead of its full-year results release on May 7. "With record net ticket sales for the third year in a row, we saw growth in consumer sales in the UK of 13% and in Spain of 41%, while international B2B sales through our Global API increased by about 60%," said Chief Executive Officer Jody Ford. "There is still so much to be achieved in the UK and Europe with the critical foundation being open, fair and competitive markets. Rail is set to surge across Europe and Trainline will be at the centre of it."
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Food delivery platform Deliveroo swung to pretax profit of GBP12.2 million in 2024, from a loss of GBP10.9 million in 2023, as revenue rose 2.0% to GBP2.07 billion from GBP2.03 billion. The firm intends to return up to GBP100 million to shareholders via the launch of a new share buyback, to begin shortly, on the back of a GBP150 million buyback completed in 2024. Deliveroo expects high-single digit gross transaction value growth for 2025, alongside adjusted earnings before interest, tax, depreciation and amortisation between GBP170 million and GBP190 million, growing up to 47% at best from GBP129.6 million in 2024. However, it delayed the delivery of its medium-term adjusted Ebitda margin of more than 4%. "Whilst the consumer environment remains uncertain, I am confident that we can continue to deliver growth by focusing on the levers in our control: supporting our restaurant partners to meet untapped consumer demand around new occasions, expanding our grocery and retail offering, and continuously improving our [consumer value proposition]," said Founder & Chief Executive Officer Will Shu.
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OTHER COMPANIES
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Digital and information management services provider Restore swung to pretax profit of GBP17.9 million in 2024 from a loss of GBP29.0 million the year before, despite revenue declining 1% to GBP275.3 million from GBP277.1 million. Restore also upped its dividend by 12% to 5.8 pence per share from 5.2p. "Trading since the start of the year has been good, with all divisions expected to deliver an increase in adjusted operating profit for the full year," CEO Charles Skinner commented, reiterating the company's medium-term target of a 20% adjusted operating margin. Restore also announced its acquisition of document management business Synertec for an initial GBP22 million consideration, which is expected to be immediately earnings enhancing. Synertec expects revenue of around GBP70 million for the year ending March 31.
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By Emily Parsons, Alliance News reporter
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Related Shares:
RHI MagnesitaSpirax-SarcoHalmaTrainlineDeliverooRestore