London’s stock market opened higher on Thursday, with the FTSE 100 index increasing by 0.5%. The positive movement was driven by a series of strong corporate earnings reports. The British pound also strengthened slightly against the dollar.
Leading the gains on the FTSE 100 was airline easyJet, after reporting improved winter performance due to rising demand. It anticipates a reduced headline pre-tax loss for the first half of the fiscal year, expecting between GBP 340 million and GBP 360 million, an improvement from the previous year’s GBP 411 million loss. The airline has seen strong demand for summer bookings and is well-prepared for the upcoming season. Hipgnosis Songs Fund experienced a significant surge of over 30% following news that Concord Chorus plans to acquire the music investment company for $1.4 billion. Additionally, meal delivery company Deliveroo reported a 6.6% increase in shares after returning to order growth in the first quarter, with a 2% rise in orders year-on-year. This growth was attributed to strong performance in France, UAE, Hong Kong, and Italy, although orders in Britain and Ireland remained flat.
Rentokil Initial has reported a positive start to 2024, with a 0.9% increase in revenue to GBP 1.27 billion in the first quarter, up from GBP 1.26 billion the previous year. The company experienced organic revenue growth across all categories, with North America showing a 1.5% increase. Despite the positive news, Rentokil shares dropped 4.3% in London trading.
Yesterday, the Federal Reserve’s Beige Book reported slight economic expansion since late February and modest price increases. The report indicated mixed consumer spending and highlighted consumers’ heightened price sensitivity. Market participants are now looking forward to comments from Bank of England policymaker Megan Greene for insights into the central bank’s interest rate outlook.
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