12th Nov 2026 12:18
(Alliance News) - Stock prices in London were higher at midday on Thursday, as investors digested stronger UK economic growth figures and a raft of corporate updates, while technology stocks faced renewed pressure ahead of the New York open.
The FTSE 100 index was up 37.83 points, 0.4%, at 10,873.30. The FTSE 250 rose 66.63 points, 0.3%, to 24,991.67, while the AIM all-share fell 3.76 points, 0.5%, to 760.53.
The Cboe UK 100 was up 0.5% at 1,078.65, the Cboe UK 250 gained 0.5% to 22,059.09, and the Cboe small companies rose 0.3% to 18,761.07.
In European equities on Thursday, the CAC 40 in Paris was up 0.7%, while the DAX 40 in Frankfurt gained 0.9%.
In Europe, attention turned to the future leadership of the European Central Bank after reports that France could support a Spanish candidate to succeed President Christine Lagarde next year.
France has signalled it could back former governor of the Bank of Spain Pablo Hernandez de Cos for the ECB presidency, the Financial Times reported on Thursday, citing four people familiar with the discussions.
The move could pave the way for an agreement between Paris and Berlin on three senior ECB appointments, with EU leaders seeking to reach a deal as early as this month, according to the newspaper.
Under a potential arrangement, Germany could secure the ECB's chief economist position, currently held by Philip Lane, whose term ends in May.
France, meanwhile, could take the executive board position overseeing market operations, currently held by Isabel Schnabel, who is due to join the International Monetary Fund in January.
Back in the UK, economic growth accelerated in the third quarter, supported by resilient consumer spending and investment in artificial intelligence, although the stronger performance raised concerns about the outlook for interest rates.
The UK economy expanded at its fastest pace in more than two years, according to figures released by the Office for National Statistics on Thursday.
Gross domestic product increased 0.7% in the three months to September, accelerating from 0.5% growth in the second quarter and matching the FXStreet-cited consensus forecast.
On an annual basis, GDP grew 1.9% in the third quarter, in line with expectations and up from 1.4% in the previous quarter.
However, economists warned that stronger economic growth could prompt the Bank of England to raise interest rates further to contain inflationary pressures.
The pound was quoted at USD1.3270 at midday on Thursday, lower than USD1.3284 at the London equities close on Wednesday. Against the euro, sterling fell to EUR1.1964 from EUR1.1974 a day earlier.
The euro edged down to USD1.1091 from USD1.1095 late Wednesday. Against the yen, the dollar fell to JPY159.68 from JPY159.83.
On the FTSE 100, Burberry Group led the risers, jumping 8.1% after reporting interim profit and sales ahead of market expectations.
The luxury fashion retailer returned to pretax profit in the first half of its financial year, reporting GBP19 million for the 26 weeks ended September 26, compared with a GBP48 million loss a year earlier.
Revenue rose 6.0% to GBP1.10 billion from GBP1.03 billion, as its turnaround strategy continued to deliver growth.
Burberry expects further revenue growth and margin expansion in financial 2027, while remaining cautious about the uncertain external environment.
Elsewhere among blue chips, 3i Group announced an increased dividend, a new share buyback programme and a further increase in its stake in discount retailer Action.
Rolls-Royce gained 2.9% after outlining plans for a new share buyback amid a strong second-half performance.
At the other end of the index, Endeavour Mining fell 6.7% after reporting lower third-quarter gold production and warning that output at its Mana mine would fall below the lower end of guidance.
The West Africa-focused gold miner produced 256,000 ounces in the third quarter, down from 264,000 ounces a year earlier, while gold sales edged up to 259,000 ounces from 258,000 ounces.
Endeavour said fourth-quarter production was expected to increase significantly from the third quarter, although output at Mana would be lower than previously anticipated due to ramp subsidence.
The company remains on track to achieve the lower half of its 2026 production guidance range.
In the FTSE 250, B&M European Value Retail surged 16% after reporting a 54% increase in interim pretax profit.
Alfa Financial Software climbed 6.1% after saying it expected annual profit to come in "slightly ahead" of market expectations.
Housebuilder Persimmon advanced 5.8% after reiterating that it remained on track to deliver full-year 2026 performance in line with market expectations.
Metro Bank rose 5.4% after announcing a strategic review, including the launch of a formal sale process, as it explores options to accelerate growth and maximise shareholder value.
The lender said it was inviting expressions of interest for a potential takeover of the entire company, although it was not currently in discussions with any potential bidder and had received no approaches.
Morgan Stanley has been appointed lead financial adviser for the process.
Metro Bank reiterated its guidance for return on tangible equity of more than 13% in the fourth quarter of 2026, above 15% in 2027 and above 18% in 2028, while cautioning that there was no certainty an offer would be made or a sale completed.
At the other end of the mid-cap index, Dr Martens plunged 17% after reporting disappointing interim results and warning that a "wide range of outcomes" remained possible for revenue and profit in financial 2027.
The footwear retailer reported a narrowed pretax loss of GBP8.5 million in the first half of its financial year, compared with GBP11.0 million a year earlier.
However, its adjusted pretax loss widened to GBP13.7 million from GBP9.4 million, while it swung to an adjusted earnings before interest and tax loss of GBP2.8 million from a GBP3.1 million profit.
Dr Martens said demand for shoes and sandals remained resilient but was insufficient to offset continued weakness in boot sales.
Among smaller companies, Videndum dropped 15% after warning that trading in August, September and October had been weaker than anticipated.
Ingenta fell 16% after saying two contracts with its largest customer, worth a combined GBP2 million, would not be renewed in financial 2027.
Stocks in New York were called to open mixed on Thursday, with technology shares set to come under pressure.
The Dow Jones Industrial Average was called up 0.1%, while the S&P 500 was called down 0.4% and the Nasdaq Composite down 0.8%.
The yield on the US 10-year Treasury was quoted at 5.00% at midday on Thursday, unchanged from Tuesday, while the yield on the 30-year Treasury narrowed to 5.35% from 5.36%.
The US bond market was closed on Wednesday for Veterans Day.
Brent oil was trading at USD92.30 a barrel at midday on Thursday, lower than USD94.03 late Wednesday.
Gold was quoted at USD3,947.70 an ounce, down from USD4,000.66 on Wednesday.
Still to come on Thursday's economic calendar, the US releases weekly initial jobless claims and existing home sales figures.
Initial jobless claims are expected to rise to 195,000 from 189,000 the previous week, according to consensus estimates.
Meanwhile, existing home sales are forecast to edge down to an annualised rate of 3.85 million in October from 3.99 million in September.
By Eva Castanedo, Alliance News senior economics reporter
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Rolls-Royce3i GroupBurberryEndeavour MiningMetro BankAlfa Financial Software HoldingsPersimmonB&MDr. MartensVidendum PlcIngenta