28th May 2025 08:53
(Alliance News) - London opened in the green on Wednesday as UK grocery sales climbed on warm spring weather, and Ukrainian President Volodymyr Zelensky suggests a trilateral meeting with the US and Russia.
The FTSE 100 index opened up 18.62 points, 0.2%, at 8,796.67. The FTSE 250 was up 59.15 points, 0.3%, at 20,997.73, and the AIM All-Share was down 0.82 points, 0.1%, at 739.09.
The Cboe UK 100 was up 0.1% at 876.41, the Cboe UK 250 was up 0.3% at 18,530.61, and the Cboe Small Companies was up 0.1% at 16,635.48.
UK grocery sales climbed as warm weather drove higher spending in summer products and consumers sought out promotions, data from Kantar showed on Wednesday.
Total grocery sales increased 4.2% to GBP35.52 billion in the twelve weeks to May 18, from GBP34.07 billion the previous year. In the four weeks to May 18, take-home grocery sales grew by 4.4%.
In the same period, grocery price inflation saw a marked rise to 4.1% from 3.3% in the four weeks to April 20. The measure was recorded at its highest level since February 2024.
"This latest jump in grocery price inflation takes us into new territory for 2025. Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3% to 4% point as people notice the impact on their wallets more," said Kantar's Head of Retail and Consumer Insight Fraser McKevitt.
In European equities on Wednesday, the CAC 40 in Paris rose 0.3%, while the DAX 40 in Frankfurt improved 0.3%.
The pound was quoted down at USD1.3492 early on Wednesday in London, compared to USD1.3515 at the equities close on Tuesday. The euro stood lower at USD1.1321, against USD1.1337. Against the yen, the dollar was trading down at JPY144.18 compared to JPY144.22.
Frontier Developments rose 9.8% at London's market open on Wednesday.
The video game maker expects revenue for its financial year ending May 31 to be around GBP90 million, against GBP89.3 million the year before. This beat a company-compiled consensus range of between GBP85 million and GBP89 million in revenue for the year.
Boosted by a GBP3.5 million gain on the sale of its publishing rights for the Foundry game 'Stranded: Alien Dawn', Frontier also anticipates "stronger-than-expected" profitability for the year, as well as a higher-than-expected cash position.
Kromek gained 7.7%.
The radiation detector and bio-detection technology solution developer said it has received two new orders, valued at around USD900,000 in total, for the supply of its D3 series of detectors for use by an unnamed European customer and an unnamed US customer.
At the other end, Kingfisher was the FTSE 100's biggest loser, down 1.4%.
The owner of B&Q and Screwfix reported total sales of GBP3.31 billion in the first quarter that ended April 30, rising 1.6% from the year before and up 2.2% on a constant currency basis. This was particularly driven by a 6.1% growth in sales in the UK & Ireland, boosted by "favourable weather" and offset by a 4.9% decline in sales in France. Poland recorded a 0.4% slip in sales for the three-month period, with "current geopolitical factors adversely impacting the Polish consumer", while other international regions collectively returned a 2.5% sales growth.
Kingfisher maintained its full-year guidance for adjusted pretax profit between around GBP480 million and GBP540 million, against GBP528 million the year before.
Angle slipped 21%.
The Guildford, England-based cancer research company said its pretax loss narrowed to GBP15.0 million in 2024, from a GBP21.6 million loss in 2023. Revenue rose 32% to GBP2.9 million from GBP2.2 million, while operating costs fell 27% to GBP16.9 million from GBP23.3 million.
"The recent market turbulence and uncertainty in the rapidly evolving macro environment and further reductions to research funding across academic and government labs has adversely impacted the company's year to date revenues," Angle said.
"While underlying demand and commercial potential is building, the current environment makes it unclear when these will convert to revenues. We have multiple large opportunities actively under discussion. However, these are binary in nature and their timing is uncertain."
As a result, Angle anticipates "modest" revenue growth in 2025, with the potential for this to be exceeded.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was marginally lower. In China, the Shanghai Composite was broadly flat, while the Hang Seng index in Hong Kong faded 0.6%. The S&P/ASX 200 in Sydney closed down 0.1%.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.8%, the S&P 500 rising 2.1%, and the Nasdaq Composite jumping 2.5%.
"The main driver behind this move was President Donald Trump's decision to delay the imposition of tariffs on imports from the European Union, which helped ease fears of an escalating trade war—an issue that has recently caused significant volatility in global financial markets," commented XS.com analyst Linh Tran. "The tariff delay is seen as a strategic move, with the US administration extending trade negotiations with the EU until July 9 instead of proceeding with the previously threatened 50% tariff."
Tran continued: "This action not only reduces pressure on US businesses with European supply chain exposure, but also creates a much-needed pause in tensions amid ongoing global economic uncertainty. For markets, this is a clearly positive signal that improves risk sentiment, encouraging capital to flow back into industrial and consumer stocks - two major sectors within the Dow Jones index."
The yield on the US 10-year Treasury was quoted flat at 4.46%. The yield on the US 30-year Treasury was quoted at 4.97%, widening slightly from 4.96%.
Ukrainian President Volodymyr Zelensky has called for a three-way summit with Donald Trump and Vladimir Putin as he seeks to force Moscow to halt its three-year invasion.
Russian President Putin rejected calls to meet Zelensky in Turkey earlier this month and the Kremlin has said a meeting between the two leaders would only happen after some kind of "agreement" is reached. The US president, meanwhile, has expressed frustration at both Putin and Zelensky for not yet striking a deal to end the war.
"If Putin is not comfortable with a bilateral meeting, or if everyone wants it to be a trilateral meeting, I don't mind. I am ready for any format," Zelensky said in comments to journalists on Tuesday that were published on Wednesday.
Brent oil was quoted higher at USD63.86 a barrel early in London on Wednesday from USD63.14 late Tuesday. Gold was quoted up at USD3,314.12 an ounce against USD3,295.13.
Still to come on Wednesday's economic calendar, the US Richmond Fed manufacturing index at 1500 BST.
By Emily Parsons, Alliance News reporter
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