London stocks are enjoying a sunny spell, buoyed by gains in commodity-related sectors and upbeat corporate news. Investors have their eyes peeled on US inflation data, which could sway the Federal Reserve’s future interest rate moves.
The FTSE 100 index climbed 0.7% on Friday morning, with energy and industrial metal mining stocks leading the charge. BP Plc and Shell each saw their shares rise over 1% as oil prices ticked up.
Man Group enjoyed a 2.7% lift after reporting record assets under management, while Drax rocketed 14.7% on the back of higher first-half profits and a rosy annual profit forecast.
NatWest has upped its yearly outlook and inked a deal to acquire a £2.5 billion mortgage portfolio from Metro Bank. Despite a 16% drop in first-half pre-tax profit to £3.03 billion, the results beat expectations. The bank sweetened the pot by hiking its interim dividend by 9.1% to 6.0 pence per share.
Meanwhile, BNP Paribas is making waves in the UK investment banking scene. The French giant has been beefing up its M&A teams and corporate broking clients. BNP’s investment banking unit posted a 21% year-on-year earnings growth in the second quarter. The bank is keen to boost its market share by helping UK businesses tap into international finance.
As investors await the US personal consumption expenditure (PCE) data, the market is abuzz with speculation. This data could be the key to the Federal Reserve’s decision on a potential rate cut in September. Stay tuned.
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