26th Jun 2025 11:58
(Alliance News) - Stock prices in London were higher midday on Thursday, while the pound strengthens amid reports that US President Donald Trump is considering naming the next Federal Reserve chair as early as September.
The FTSE 100 index was up 28.76 points, 0.3%, at 8,747.51. The FTSE 250 was up 123.12 points, 0.6%, at 21,421.16, and the AIM All-Share was up 3.64 points, 0.5%, at 764.09.
The Cboe UK 100 was up 0.2% at 870.70, and the Cboe UK 250 was up 0.8% at 18,947.42, but the Cboe Small Companies was down 0.5% at 17,132.63.
Anglo American led the FTSE 100, gaining 5.5%. Fellow miners Glencore and Antofagasta rose 4.2% and 4.1%, respectively.
Shell was up 0.8% after it dismissed rumours of plans to buy fellow oil major BP, which also rose 0.8%.
"UK takeover action has focused on the mid to lower end of the market so far this year and for a brief moment it looked like we might get the first mega cap action," AJ Bell's Russ Mould commented. "Alas, Shell has thrown cold water over talk it was preparing a bid for BP, meaning the FTSE 100 hasn’t delivered the surge which many thought might happen this morning."
"Speculation last night around a BP bid effectively set the stage for the UK stock market to rocket today. Instead, Shell has spoiled the party and the blue-chip index is static."
Inchcape maintained its earlier position at the top of the FTSE 250, rising 6.5%. Moonpig led the laggers, falling 13%.
Small-cap Pharos Energy rose 1.7% after it named Joao Saraiva e Silva as non-executive chair, succeeding John Martin with immediate effect.
Blue Star Capital, on AIM, surged up 27%.
The blockchain, esports and payment-focused investor has agreed to buy around 4,500 shares in SatoshiPay Ltd, increasing its stake in the blockchain payments firm to approximately 50.0%.
UK Prime Minister Keir Starmer has said the trio of recent trade deals has "restored our identity" in a "volatile world", as the government laid out its new plan to better protect firms from rising threats to global trade.
Since Donald Trump's tariff announcements in April, the UK has reached new agreements with the US, India and the EU. Starmer said these showed that Britain "is proudly...open for business, and today's trade strategy builds on that".
The government's Trade Strategy aims to boost opportunities for UK businesses, particularly in the service sector, to export internationally, and vows to protect domestic firms from global threats to free trade.
In European equities on Thursday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.9%.
The German parliament on Thursday approved tax relief measures worth billions of euros, aimed at pulling Europe's largest economy out of crisis.
The measures include more options for businesses to account for the depreciation in the value of their machinery from July 1, in a move designed to encourage companies to increase investments.
"That is what this government has set out to do: to prioritise economic strength, growth and job security," Finance Minister Lars Klingbeil told the Bundestag, the lower house of parliament.
Specifically, companies will be able to set their expenditure on machinery and equipment against tax by up to 30% for the next three years, and to a lesser extent in the following years. This will reduce the tax burden after a purchase, leaving companies with more money available sooner.
The number of German companies going bankrupt is continuing to rise, credit agency Creditreform warned on Thursday.
The agency says some 11,900 companies will have filed for insolvency by the end of the first half of the year. That would be 9.4% more than in the January-June period of 2024.
"Companies are struggling with weak demand, rising costs and ongoing uncertainty," said Patrik-Ludwig Hantzsch, head of Creditreform Economic Research. "Financial reserves are dwindling and more businesses are finding themselves in serious difficulties."
The pound was quoted higher at USD1.3741 at midday on Thursday in London, compared to USD1.3622 at the equities close on Wednesday. The euro stood at USD1.1719, higher against USD1.1626. Against the yen, the dollar was trading at JPY144.12, lower compared to JPY145.60.
The dollar weakened in response to a Wall Street Journal report that US President Donald Trump is considering naming a new chair of the US Federal Reserve as early as September or October.
This would undermine current Chair Jerome Powell, whose term has another 11 months to run.
Citing "people familiar" with the matter, the newspaper noted Trump's impatience with the US central bank's slow approach to cutting interest rates, with Treasury Secretary Scott Bessent among Powell's possible replacements.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.3%, the S&P 500 index up 0.4%, and the Nasdaq Composite up 0.5%.
The yield on the US 10-year Treasury was quoted at 4.27%, narrowing from 4.32%. The yield on the US 30-year Treasury was quoted at 4.82%, narrowing from 4.86%.
Brent oil was quoted lower at USD66.70 a barrel at midday in London on Thursday from USD68.18 late Wednesday.
Gold was quoted higher at USD3,340.60 an ounce against USD3,323.77.
Still to come on Thursday's economic calendar are the multiple US releases including personal consumption expenditures, jobless claims, and GDP.
By Emma Curzon, Alliance News reporter
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