London open: FTSE nudges up ahead of BoE, amid earnings barrage

London stocks nudged higher in early trade on Thursday as investors waded through a deluge of corporate news and eyed the latest policy announcement from the Bank of England.

At 0855 BST, the FTSE 100 was up 0.1% at 8,375.24.

On Wednesday, the US Federal Reserve kept its benchmark rate at between 5.25% and 5.50% as expected. However, chair Jerome Powell signalled that the central bank would be prepared to loosen monetary policy at its next meeting if price pressures continue to ease.

"A reduction in the policy rate could be on the table as soon as the next meeting in September," he said. "We’re getting closer to the point at which it’ll be appropriate to reduce our policy rate, but we’re not quite at that point."

As far as the BoE is concerned, expectations are for a 25 basis points cut to 5%. This would mark the first reduction since 2020.

Patrick Munnelly at TickMill Group said: "UK traders’ attention will be focused on the Bank of England today, following the Bank of Japan's second interest rate increase in 17 years and the clearest signal yet from the U.S. Federal Reserve that it could lower rates in September.

"Most economists anticipate Britain's central bank will cut rates from their 16-year high. Markets estimate the likelihood at a more modest 58%, with the uncertainty not surprising given policymakers have not spoken publicly for over two months due to rules ahead of Britain's July 4 election."

In equity markets, Smith & Nephew surged as the medical equipment maker reported a jump in first-half operating profit and revenue.

Rolls-Royce rallied as it lifted full-year profit guidance, hailing a strong first half, and said it was reinstating dividends.

Next gained as the retailer increased its full-year profit guidance by £20m to £980m after second-quarter sales exceeded its expectations.

Shell gushed higher as the oil giant reported better-than-expected earnings for the second quarter of $6.3bn and announced a $3.5bn share buyback.

Barclays was in the black as it posted a decline in half-year profit but lifted its outlook for full-year net interest income.

Coats Group and Elementis also gained ground after half-year results.

On the downside, Schroders was under pressure after it missed half-year profit forecasts, while Melrose Industries and Wizz also fell after results.

Vesuvius was in the red as it said end markets were weaker than expected in the first half and that full-year headline trading profit was set to be "only slightly ahead" of last year on a constant currency basis.

Market Movers

FTSE 100 (UKX) 8,375.24 0.09%
FTSE 250 (MCX) 21,590.88 -0.05%
techMARK (TASX) 4,859.49 0.51%

FTSE 100 - Risers

Smith & Nephew (SN.) 1,233.00p 9.80%
Rolls-Royce Holdings (RR.) 488.00p 8.54%
Next (NXT) 9,756.00p 7.52%
Marks & Spencer Group (MKS) 337.90p 2.92%
London Stock Exchange Group (LSEG) 9,718.00p 2.62%
Pershing Square Holdings Ltd NPV (PSH) 3,932.00p 2.08%
Haleon (HLN) 356.50p 1.97%
Smurfit Westrock (DI) (SWR) 3,513.00p 1.80%
Associated British Foods (ABF) 2,524.00p 1.69%
Shell (SHEL) 2,886.00p 1.62%

FTSE 100 - Fallers

Schroders (SDR) 368.40p -6.21%
Melrose Industries (MRO) 567.40p -3.63%
HSBC Holdings (HSBA) 683.00p -2.98%
Reckitt Benckiser Group (RKT) 4,072.00p -2.54%
Lloyds Banking Group (LLOY) 58.32p -2.11%
Entain (ENT) 560.60p -1.82%
International Consolidated Airlines Group SA (CDI) (IAG) 163.15p -1.60%
Centrica (CNA) 130.50p -1.55%
easyJet (EZJ) 444.40p -1.38%
Relx plc (REL) 3,627.00p -1.25%

FTSE 250 - Risers

Coats Group (COA) 93.40p 4.36%
Helios Towers (HTWS) 132.00p 4.27%
IP Group (IPO) 43.20p 3.60%
Dr. Martens (DOCS) 73.50p 3.52%
Elementis (ELM) 164.20p 2.75%
Watches of Switzerland Group (WOSG) 416.20p 2.31%
Polar Capital Technology Trust (PCT) 3,155.00p 2.27%
Supermarket Income Reit (SUPR) 76.00p 2.15%
Allianz Technology Trust (ATT) 377.00p 2.03%
Me Group International (MEGP) 196.40p 1.66%

FTSE 250 - Fallers

Wizz Air Holdings (WIZZ) 1,669.00p -12.75%
Vesuvius (VSVS) 447.00p -7.55%
Telecom Plus (TEP) 1,834.00p -3.47%
RHI Magnesita N.V. (DI) (RHIM) 3,565.00p -2.86%
Kainos Group (KNOS) 1,072.00p -2.37%
Serco Group (SRP) 187.40p -2.14%
Energean (ENOG) 980.00p -1.90%
North Atlantic Smaller Companies Inv Trust (NAS) 4,270.00p -1.84%
Bloomsbury Publishing (BMY) 732.00p -1.61%
Bellevue Healthcare Trust (Red) (BBH) 147.40p -1.60%