25th Mar 2025 11:53
(Alliance News) - London's FTSE 100 remained higher at midday on Tuesday, as investors await a US house price index reading in the afternoon and Wednesday's UK spring statement.
The FTSE 100 index was up 58.37 points, 0.7%, at 8,696.29. The FTSE 250 was up 134.42 points, 0.7%, at 20,056.85, and the AIM All-Share was up 6.30 points, 0.9%, at 695.45.
The Cboe UK 100 was 0.6% higher at 869.80, the Cboe UK 250 was 0.7% higher at 17,513.87, and the Cboe Small Companies was down 0.6% at 15,518.83.
The pound was quoted higher at USD1.2954 at midday on Tuesday in London, compared to USD1.2918 at the equities close on Monday. The euro stood at USD1.0825, up against USD1.0795.
Against the yen, the dollar was trading at JPY150.12, down from JPY150.56.
Stocks in New York were called slightly higher. The Dow Jones Industrial Average was called broadly flat, the S&P 500 index is called up 0.1%, and the Nasdaq Composite marginally higher.
"The US Dollar traded within a narrow range on Tuesday as market participants digested fresh trade developments and awaited further economic signals. On Monday, US President Donald Trump mentioned new trade policy changes that added to the uncertainty and could fuel caution among traders," commented FlowCommunity analyst Ruben Ferreira.
"Trump reaffirmed his intention to impose automobile tariffs and introduced a 25% tariff on countries purchasing oil from Venezuela, adding another layer of risks. This uncertain environment is likely to maintain a clouded short-term outlook for the greenback. Escalating trade tensions could weigh on the dollar by raising concerns over economic stability.
"Attention now turns to this week's GDP growth figures, which could play a pivotal role in guiding market expectations. Weaker data may prompt speculation around a weaker economic trajectory, pressuring the dollar. In contrast, strong growth figures could reinforce a positive outlook and offer renewed support to both yields and the currency."
Still to come on Tuesday's economic calendar, the US house price index at 1300 GMT, and US new home sales, the US Richmond Fed manufacturing index and the US Conference Board consumer confidence readings at 1400 GMT.
Leading the FTSE 100 at midday on Tuesday was Segro, up 3.8%.
The industrial property investor announced it has formed a a GBP1.0 billion joint venture with Pure Data Centres Group to build its first fully fitted data centre in west London. Segro Pure Premier Park Data Centre Ltd, an equal joint venture, will develop a 56-megawatt facility on a 10-acre site at Segro Park Premier Road in Park Royal. The facility will target hyperscale customers and is expected to deliver a 9% to 10% net yield on cost.
Segro will contribute the land and around GBP150 million in cash equity over the construction period, while the remainder of the development will be funded through non-recourse bank financing. Construction of the shell is expected to being in 2026, with the space anticipated to be operational from 2029.
On the FTSE 250 index, Morgan Sindall is among the winners, up 7.2%.
The construction and regeneration company said in a brief trading update that, since announcing full-year results in February, its Fit Out division has experienced an acceleration in its trading momentum. As a result, the division is now expected to exceed both the group's previous expectations and the top-end of its revised medium-term targets of GBP60 million to GBP85 million.
All other divisions are broadly on track to perform in line with the group's previous guidance and expectations, the firm said. Overall, it now anticipates that full year adjusted pretax profit will be slightly ahead of market consensus of GBP178.0 million, against GBP172.5 million a year prior.
Empyrean Energy, on the other hand, sank 3.6% on Tuesday.
The oil and gas firm reported reaching total depth of 1,464 metres at the Wilson River-1 well in Australia, and logged around 6 metres of potential gross oil zone in one of the main target reservoirs.
"The main zone of interest appears to share a number of similarities on the preliminary log analysis to an existing producing well nearby. We look forward to completing the necessary work to define our testing program," said Empyrean Energy Chief Executive Officer Tom Kelly.
IP Group led the FTSE 250 losers, slipping 3.8%.
Its net asset value per share was 97.7 pence at December 31, down 15% from 114.8p a year prior. The active investor in early stage science companies also recorded a widened pretax loss for 2024, stretching to GBP206.7 million from GBP175.3 million.
IP Chief Executive Greg Smith said: "The group prioritised profitable exits during 2024, outperforming a relative lack of liquidity across the venture capital market, despite our negative NAV per share performance. These exits included our largest ever cash realisation with the sale of Featurespace to [Visa Inc], alongside a number of other holdings, at or above carrying values.
"The GBP183 million of cash proceeds strengthened our liquidity position and enabled us to significantly increase our share buyback programme while continuing to invest for growth."
Looking ahead, IP Chair Douglas Flint added: "The board is confident that there is substantial unrecognised value within the portfolio."
In European equities on Tuesday, the CAC 40 in Paris was up 1.2%, while the DAX 40 in Frankfurt was up 1.1%.
Business morale in Germany picked up this month, the Ifo Institute reported on Tuesday, with companies happier about current conditions and more optimistic looking ahead.
The Ifo Business Climate Index posted 86.7 in March, up from February's seasonally adjusted figure of 85.3 points.
"Companies were more satisfied with their current business situation, and their expectations rose noticeably," Ifo said. "German businesses are hoping for a recovery."
The German economy has undergone a prolonged downturn, with recessions in both 2023 and 2024.
Earlier this month, however, German lawmakers signed off on an EUR500 billion spending package for infrastructure and climate initiatives, as well as relaxations for the nation's debt rules which lay the foundations for increased defence spending.
Brent oil was quoted at USD73.40 a barrel at midday in London on Tuesday, improved from USD72.98 late Monday.
Gold was quoted higher at USD3,025.30 an ounce against USD3,011.44.
By Emily Parsons, Alliance News reporter
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