17th Jul 2025 12:03
(Alliance News) - European equities moved higher on Thursday afternoon, with the FTSE 100 shaking off weaker UK data, and continental peers looking set to snap lengthy losing streaks.
The FTSE 100 index traded up 43.33 points, 0.5%, at 8,969.88. The FTSE 250 was up 105.02 points, 0.5%, at 21,706.88, and the AIM All-Share faded 2.68 points, 0.4%, at 769.42.
The Cboe UK 100 was up 0.2% at 894.46, the Cboe UK 250 was up 0.3% at 19,103.28, and the Cboe Small Companies was up 0.4% at 17,600.32.
In European equities on Thursday, the CAC 40 in Paris shot up 0.9%, while the DAX 40 in Frankfurt was up 0.8%. Automotive stocks were largely among the better performers, after falling on Wednesday in a negative read-across following a Renault guidance cut. The Dacia and Alpine brand owner itself lost another 0.4%, however, after an 18% slump on Wednesday.
Going into Thursday, the DAX had suffered five declines in a row. The CAC has fallen in each of the last four trading days. The FTSE 100 is on a two-day losing streak, though it did achieve a new record high on Tuesday.
Sterling faded to USD1.3399 on Thursday afternoon UK time, from USD1.3473 at the time of the London equities close on Wednesday. It had traded at USD1.3395 before the release of UK data on Thursday morning.
The euro slumped to USD1.1586 from USD1.1708, while against the yen, the dollar surged to JPY148.68 from JPY147.97.
"The US dollar strengthened on Thursday and continued to recover from yesterday's pullback, as investors reacted to President Trump's clarification that he is 'highly unlikely' to dismiss Federal Reserve Chair Jerome Powell. The statement helped calm markets after intense speculation the previous day over Powell's tenure, which had briefly unsettled the greenback and triggered volatility in the markets," Naga analyst Frank Walbaum commented.
"While Trump reiterated criticism of Powell and left the door open to a potential resignation, the retreat from a confrontational stance was enough to restore some confidence in the markets."
Walbaum continued: "Attention now shifts to the Fed's next steps, particularly in light of recent inflation data showing some divergence between consumer and producer prices. CPI data showed an increase, although it was softer than expected, while the PPI data declined."
On the US economic events docket on Thursday, there is a retail sales reading and initial jobless claims data at 1330 BST.
The yield on the 10-year US Treasury was at 4.47% midday Thursday, easing from 4.48%, where it stood at the time of the European equities close on Wednesday. The 30-year yield shrunk to 5.02% from 5.06%.
In New York, the Dow Jones Industrial Average is called down 0.1%, while the S&P 500 and Nasdaq Composite are called to open 0.1% higher.
In London, easyJet shares fell 5.8%, as the budget carrier said its annual outlook "remains positive", though clouded by industrial action in France and recent higher fuel costs.
In the third quarter to June 30, headline pretax profit rose 21% to GBP286 million from GBP236 million. Revenue improved 11% to GBP2.92 billion, with easyJet reporting it was aided by the later timing of Easter this year. Easter was in April this time, falling within its third quarter, having landed in March the prior year.
The airline said: "The outlook for FY25 remains positive, with good profit growth expected year on year, albeit impacted by recent higher fuel costs and the scale of industrial action by French air traffic control. With 67% of our airline's fourth-quarter capacity sold, the final outcome for FY25 will, as always, depend on late summer bookings and the associated yields."
Diploma rose 7.6% as the provider of technical products and services upped its annual guidance. Diploma now expects full-year organic growth of 10%, its guidance lifted from 8%.
Ocado jumped 17%, the best FTSE 250 performer. It said group revenue improved 13% on a pro-forma basis to GBP674.0 million in the first half of June 1, and the grocer and warehouse technology company's pro forma pretax profit amounted to GBP607.3 million, swinging from a GBP144.2 million loss.
Ocado since April has no longer consolidated the Ocado Retail joint-venture's earnings, instead accounting for it "as an associate using the equity method". The JV is operated alongside Marks & Spencer. They own 50% each. The pro-forma figures present results as if "Ocado Retail had been equity accounted for the entirety of the relevant financial period", it explains.
"As a consequence of the accounting change, Ocado recognised a valuation of GBP750.0 million for its 50% share of Ocado Retailʼs equity and an accounting gain of GBP782.6 million," Ocado added.
Ocado said it is focused on turning cash flow positive during the next financial year, financial 2026. It also said it was a full year of positive cash flow in financial 2027.
Shore Capital Markets analyst commented: "We are not sure should we be putting up the bunting for the firm to be FY cash positive in FY27 for the first time after 27Y of trading. Such stuff is far from premium equity matter. Divisional operating progress is pleasing in H1, including Ocado Retail Ltd gaining share, but it is debatable as to whether Ocado can achieve meaningful sequential positive earnings."
Furniture retailers were also in focus. Dunelm added 4.6%, while DFS rose 5.5%. Dunelm said sales rose in its financial year, and it expects to report profit in line with consensus.
Total sales in the year to June 28 were 3.8% higher at GBP1.77 billion, it said in a trading statement. In the final quarter alone, they rose 4.0% on-year to GBP415 million.
It expects pretax profit in line with consensus of GBP210 million. Pretax profit in financial 2024 amounted to GBP205.4 million, so it expects growth of around 2.2%.
DFS expects to report annual profit above guidance. Adjusted pretax profit for the financial year that ended June 29 is estimated to be "slightly above the top end of guidance" of GBP25 million to GBP29 million. It would represent a sharp on-year rise from GBP10.5 million.
A barrel of Brent rose to USD68.63 early Thursday afternoon, from USD67.87 at the time of the London equities close on Wednesday. Gold declined to USD3,329.44 an ounce from USD3,371.80.
By Eric Cunha, Alliance News news editor
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