7th Aug 2025 08:55
(Alliance News) - London stocks were mixed at Thursday's market open, as investors look to a UK interest rate decision at midday and weigh an acceleration in house prices during July.
The FTSE 100 index opened down 33.50 points, 0.4%, at 9,130.81. The FTSE 250 was up 11.71 points, 0.1%, at 21,937.59, and the AIM All-Share was up 0.70 of a point, 0.1%, at 765.05.
The Cboe UK 100 was down 0.2% at 915.54, the Cboe UK 250 was up 0.3% at 19,314.76, and the Cboe Small Companies was marginally higher at 17,189.64.
In European equities on Thursday, the CAC 40 in Paris gained 0.2%, while the DAX 40 in Frankfurt was slightly higher.
The average UK house price rose 0.4% in July, faster than in June, though the annual growth rate eased, Halifax reported on Thursday.
The Halifax house price index found that the average UK house price increased by 0.4% in July to GBP298,237, accelerated from a 0.1% rise in June to GBP297,157 but slowed from a 0.7% increase in July 2024.
The average house price is now 2.4% higher over the past year, slowed from a 2.7% annual growth rate in June.
The pound was quoted up at USD1.3375 early on Thursday in London, compared to USD1.3343 at the equities close on Wednesday. The euro stood higher at USD1.1683, against USD1.1639. Against the yen, the dollar was trading lower at JPY146.78 compared to JPY147.34.
"The Bank of England...is expected to announce a 25bp rate cut today, but the vote split will be the major talking point - with rising risks to both inflation and the labour market amid Trump tariffs and Reeve's tax hikes," commented Swissquote analyst Ipek Ozkardeskaya.
"Seven out of nine [Monetary Policy Committee] members are expected to vote for a cut, one will likely push for a larger cut, and one is expected to stay put. Another 25bp cut is expected in November, but it will be interesting to see if inflation risks threaten that move.
"Any hawkish surprise – that will play around the language about 'gradual and careful rate cuts' - could help support cable, which is rising above its 100-DMA this morning on US dollar weakness. But sterling's weakness is more obvious against the euro, where the EURGBP is pushing toward its highest level since end-2023, driven by the UK's deteriorating economic outlook and rising inflation risks - with little room for more fiscal support, and likely more tax hikes in a country already struggling with the recent fiscal squeeze."
Hikma Pharmaceuticals fell 9.8% at London's market open.
The London-based pharmaceutical company reported pretax profit of USD295 million for the six months that ended June 30, rising 2.4% from USD288 million the year before. Revenue grew 5.7% to USD1.66 billion from USD1.57 billion.
Hikma lifted its interim dividend by 12% to 36 pence per share from 32p.
The company maintained its full-year outlook for 2025, guiding for revenue growth between 4% to 6%, and core operating profit of USD730 million to USD770 million. This would be up 7.1% at best from USD719 million in profit in 2024.
At the other end, InterContinental Hotels rose 5.5%.
The Berkshire, England-based hotel company said pretax profit rose 34% to USD633 million in the six months that ended June 30, from USD472 million a year earlier. Revenue improved 8.5% to USD2.52 billion from USD2.32 billion, and the company declared an interim dividend of 58.6 cents per share, up 10% on-year from 53.2 cents.
"We remain on track to meet full year consensus profit and earnings expectations," said Hotels & Resorts Chief Executive Officer Elie Maalouf. "While some shorter term macro-economic uncertainties remain, many are subsiding, and we are confident in the ongoing successful delivery of our growth algorithm, driven by the strength of IHG's enterprise platform and our ability to further capitalise on our scale, leading positions and the attractive long-term demand drivers for our markets."
Epwin Group jumped 31%.
The manufacturer of energy efficient and low maintenance building products and based in Solihull, England has accepted a takeover bid from Laumann Group, the provider of construction-related product solutions and IT services headquartered in Westphalia, Germany.
The offer comprises 120 pence in cash per Epwin share, which is around a 32% premium to Epwin's closing price on Wednesday, and values the entire share capital of Epwin at around GBP167.3 million on a fully diluted basis. The bid implies an enterprise value of roughly GBP269.6 million.
In Asia on Thursday, the Nikkei 225 index in Tokyo improved 0.7%. In China, the Shanghai Composite edged up 0.2%, while the Hang Seng index in Hong Kong rose 0.6%. The S&P/ASX 200 in Sydney closed down 0.1%.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average gaining 0.2%, the S&P 500 advancing 0.7% and the Nasdaq Composite rising 1.2%.
The yield on the US 10-year Treasury was quoted at 4.25%, widening from 4.22%. The yield on the US 30-year Treasury was quoted at 4.83%, stretching from 4.81%.
Donald Trump said he could meet with Vladimir Putin "very soon," following what the US president described as highly productive talks in Moscow between his special envoy and the Russian leader.
The potential summit was discussed in a call between Trump and Ukrainian leader Volodymyr Zelensky that, according to a senior source in Kyiv, included NATO Secretary General Mark Rutte and the leaders of Britain, Germany and Finland.
"There's a good chance that there will be a meeting very soon," Trump told reporters Wednesday at the White House, when asked when he would meet the Ukrainian and Russian leaders.
He gave no indication where the meeting with Putin might take place. It would be the first US-Russia leadership summit since former president Joe Biden met with his counterpart in Geneva in June 2021.
The New York Times and CNN, citing people familiar with the plan, said Trump plans to sit down with Putin as early as next week, and then wants a three-way meeting with the Russian leader and Zelensky.
Brent oil was quoted lower at USD67.36 a barrel early in London on Thursday from USD68.31 late Wednesday. Gold was quoted higher at USD3,394.76 an ounce against USD3,375.48.
Still to come on Thursday's economic calendar, a UK interest rate decision and weekly jobless claims data in the US.
By Emily Parsons, Alliance News reporter
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