London open: FTSE rises but IAG flies lower after results

London stocks rose in early trade on Friday, taking their cue from a positive close on Wall Street as investors eyed a key US inflation reading and mulled a better-than-expected UK consumer confidence survey.

At 0830 GMT, the FTSE 100 was up 0.3% at 7,934.46.

Investors were looking ahead to the release of US personal consumption expenditure figures for January at 1330 GMT.

On home shores, meanwhile, the latest survey from GfK showed that consumer confidence rebounded from historic lows in February.

GfK’s long-running consumer confidence index rose seven points to -38, with all five confidence measures up. This was the highest level since April 2022 and ahead of analysts’ expectations for a reading of -43, but GfK said the measure remains "severely depressed".

The index measuring changes in personal finances during the last 12 months was five points higher at -26, while the index for personal finances over the next year was up nine points at -18.

The measure for the general economic situation of the country in the last year was six points higher at -65, while the same index but for the next 12 months rose 11 points to -43.

The major purchase index ticked up three points to -37 and the savings index - which measures how likely people are to save - increased five points to +19. This index is not included in the overall GfK measure.

Joe Staton, client strategy director at GfK, said: "Despite widely reported headwinds of inflation continuing to outstrip wage rises, and the ongoing household challenge from the cost-of-living crisis, consumers have suddenly shown more optimism about the state of their personal finances and the general economic situation, especially for the coming year.

"While it's too early to talk about ‘green shoots of recovery’, the uptick across all measures should be welcomed. But what’s happening? Are people simply fed up with hearing bad news? Do they see a milder recession than the pundits predicted? Do they sense the most worrying phase of the energy crisis is over? The headline consumer confidence score is still severely depressed and the mood as well as the economy remain a long way off pre-lockdown levels, but a little consumer resilience might be what we need to soften any downturn in 2023.

"However, many challenges remain and this may be nothing more than a bubble of hope - and bubbles always burst."

In equity markets, British Airways owner IAG was in the red despite saying it swung to a full-year profit as international travel recovered from the Covid pandemic. The company also said it had agreed to buy out the 80% of Air Europa it does not own for €400m in a move to turn Madrid into a major airport hub.

The group, which also owns Iberia and Aer Lingus, reported an operating profit of €1.25bn in 2022 as Covid travel restrictions were lifted, compared with a loss of €2.7bn a year earlier.

Jupiter Fund Management surged to the top of the FTSE 250 despite reporting a slump in both assets under management and profits after a "difficult" year for the City fund manager.

Broker Peel Hunt said the final results were "significantly better than expected, including surprisingly positive flows in the second half".

Jupiter posted a drop in underling pre-tax profit to £77.6m from £216.7m, but Peel said this was ahead of its estimate and consensus expectations of £63m.

Outside the FTSE 350, Cineworld tumbled after saying it had received non-binding proposals for some or all of the group’s businesses but that none of these included an all-cash bid for the entire business and any sale will not provide recovery for shareholders.

Market Movers

FTSE 100 (UKX) 7,934.46 0.34%
FTSE 250 (MCX) 19,830.22 0.20%
techMARK (TASX) 4,642.38 0.21%

FTSE 100 - Risers

SSE (SSE) 1,790.00p 1.65%
BP (BP.) 553.20p 1.13%
Smurfit Kappa Group (CDI) (SKG) 3,082.00p 1.12%
Kingfisher (KGF) 270.50p 1.05%
Phoenix Group Holdings (PHNX) 629.00p 1.03%
Melrose Industries (MRO) 148.35p 1.02%
BAE Systems (BA.) 910.80p 1.00%
Scottish Mortgage Inv Trust (SMT) 709.80p 0.97%
Rentokil Initial (RTO) 518.60p 0.93%
SEGRO (SGRO) 843.60p 0.91%

FTSE 100 - Fallers

International Consolidated Airlines Group SA (CDI) (IAG) 161.08p -2.64%
Flutter Entertainment (CDI) (FLTR) 13,760.00p -1.18%
Anglo American (AAL) 2,974.50p -1.16%
Rio Tinto (RIO) 5,778.00p -0.99%
Burberry Group (BRBY) 2,454.00p -0.77%
Fresnillo (FRES) 771.80p -0.52%
Centrica (CNA) 102.05p -0.44%
Entain (ENT) 1,351.00p -0.30%
Associated British Foods (ABF) 1,944.00p -0.28%
Ocado Group (OCDO) 636.60p -0.25%

FTSE 250 - Risers

Jupiter Fund Management (JUP) 146.90p 9.55%
Synthomer (SYNT) 155.10p 3.19%
Cranswick (CWK) 3,100.00p 1.91%
PureTech Health (PRTC) 221.00p 1.84%
Harbour Energy (HBR) 287.10p 1.70%
Bodycote (BOY) 647.50p 1.65%
TUI AG Reg Shs (DI) (TUI) 1,659.20p 1.60%
Big Yellow Group (BYG) 1,248.00p 1.38%
Pantheon International (PIN) 259.00p 1.37%
Spirent Communications (SPT) 218.00p 1.30%

FTSE 250 - Fallers

Telecom Plus (TEP) 1,792.00p -1.65%
Hikma Pharmaceuticals (HIK) 1,693.50p -1.43%
ASOS (ASC) 828.50p -1.37%
Domino's Pizza Group (DOM) 284.00p -1.32%
Wood Group (John) (WG.) 197.30p -1.13%
Future (FUTR) 1,412.00p -1.12%
JPMorgan Emerging Markets Inv Trust (JMG) 113.20p -1.05%
888 Holdings (DI) (888) 70.25p -0.92%
Drax Group (DRX) 643.50p -0.85%
TBC Bank Group (TBCG) 2,370.00p -0.84%