7th Aug 2024 11:59
(Alliance News) - Stock prices in Europe got a boost at midday Wednesday, with New York also called to open higher, as investors enjoyed some relief in the markets.
The FTSE 100 index was up 79.14 points, 1.0%, at 8,105.83. The FTSE 250 was up 177.17 points, 0.9%, at 20,544.87, and the AIM All-Share was up 4.56 points, 0.6%, at 764.23.
The Cboe UK 100 was up 1.1% at 809.12, the Cboe UK 250 was up 1.0% at 17,990.75, and the Cboe Small Companies was up 0.4% at 16,737.77.
In European equities on Wednesday, the CAC 40 in Paris was up 1.6%, while the DAX 40 in Frankfurt was up 1.4%.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.8%, the S&P 500 index up 1.0%, and the Nasdaq Composite up 1.2%.
After Monday's global sell-off and a prevailing uneasy mood, stocks in Europe edged higher on Wednesday.
Helping to provide some calm was the Bank of Japan.
The BoJ's deputy governor said Wednesday that officials would stick to their ultra-loose monetary policies given market volatility, sparking a big drop in the yen, while stocks rose.
In a speech on Wednesday morning, BoJ Deputy Governor Shinichi Uchida took a more dovish stance.
"I believe that the Bank needs to maintain monetary easing with the current policy interest rate for the time being, with developments in financial and capital markets at home and abroad being extremely volatile," he said.
Li Xing Gan at Exness commented: "The Japanese yen rose following the Bank of Japan’s interest rate hike and its detailed plan for quantitative tightening. Earlier in the month, the yen had hit near 38-year lows due to significant interest rate differentials between Japan and other developed nations. The rate hike follows currency interventions by the Ministry of Finance, prompting a reassessment of popular carry trades, which drove the yen’s rebound."
Against the yen, the dollar was trading at JPY147.52 at midday on Wednesday in London, higher compared to JPY144.70 at the equities close on Tuesday.
The pound was quoted at USD1.2706 at midday on Wednesday in London, down compared to USD1.2711. The euro stood at USD1.0910, lower against USD1.0930.
In the UK, investors were digesting news that house prices climbed in July.
Numbers from mortgage lender Halifax showed that UK house price growth quickened to 2.3% in July annually, picking up speed from a 1.6% increase in June. This is the highest annual growth rate recorded since January.
House prices increased by 0.8% in July on-month, after falling by 0.2% in June from May. The monthly rise in July was expected to be 0.3%, according to FXStreet-cited consensus.
AJ Bell's Russ Mould said: "The latest house price data from Halifax for July suggests the property market was already starting to sputter into life before the Bank of England applied the jump leads with an interest rate cut last week. This helped to give housebuilders a lift and they will be hoping for evidence of further momentum in the market, driven by improved mortgage affordability, when the numbers for August drop."
On the back of the data, housebuilders were trading higher. Persimmon, Barratt Developments and Taylor Wimpey were up 2.8%, 1.8%, and 1.7%, respectively.
Elsewhere, Glencore rose 2.2%, after it swung to an interim loss following a huge write-off.
The Barr, Switzerland based group posted a net loss of USD233 million for the first six months of 2024, swung from a profit of USD4.57 billion.
For the first half, revenue was up 9.0% to USD117.09 billion from USD107.42 billion.
WPP lost 2.7%.
The London-based advertising and public relations firm said pretax profit jumped 66% to GBP338 million in the six months that ended June 30 from GBP204 million a year before. Revenue edged up 0.1% to GBP7.23 billion from GBP7.22 billion.
Looking ahead, revised guidance foresees like-for-like revenue less pass-through costs growth of negative 1% to 0%, trimmed from 0% to positive 1% previously.
Also Wednesday, WPP said it agreed to sell its entire majority stake, approximately 50%, in strategic communications and advisory firm, FGS Global, to an acquisition vehicle with funds managed or advised by private equity firm Kohlberg Kravis Roberts.
"This transaction better positions WPP to focus on and invest in its world-class creative, media and corporate and consumer public relations businesses to deliver growth while strengthening the group's balance sheet," WPP said.
The consideration for the sale is USD775 million, payable in cash at completion which is expected before the end of 2024.
In the FTSE 250, TP ICAP rose 6.5%.
On AIM, Samuel Heath & Sons jumped 12%.
The shower and bathroom accessory manufacturer reported that revenue rose to GBP15.2 million in the financial year ended March 31, up from GBP14.7 million a year earlier.
Pretax profit fell to GBP884,000 from GBP1.1 million. It explained that profit fell as cost of sales, selling & distribution costs, and administrative expenses rise.
"Although we have seen a good start to the new financial year, we are mindful of our customers' concerns and are budgeting cautiously, while allowing sufficient flexibility should trade remain consistently positive," said Non-Executive Chair Anthony Buttanshaw.
"Recruitment has been less difficult than in 2023 and we are pleased to welcome a number of highly skilled new colleagues to the company."
Brent oil was quoted at USD77.26 a barrel at midday in London on Wednesday, up from USD76.46 late Tuesday.
Gold was quoted at USD2,394.60 an ounce, higher against USD2,386.99.
By Sophie Rose, Alliance News senior reporter
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