- FTSE 100 up 64 points
- JD Sports warns of low-end profit
- Halma jumps as interim revenue tops £1bn
4.06pm: FTSE 100 racks up gain
London’s blue chips headed toward the end of the day's trading on the front foot, having climbed by 64 points to 8,149.
Halma PLC (LSE:HLMA) continued to lead the way among risers after unveiling a higher dividend and revenue in excess of £1 billion for the first half of the year.
Index heavyweights Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) also gained in line with a rise in oil prices on fears over escalations around the Russia-Ukraine war.
JD Sports Fashion PLC (LSE:JD.) remained the biggest faller, warned profit would be at the low end of guidance for the year after “volatile” trading and negative growth in the third quarter.
“The FTSE 100’s day has been dominated by the weak outlook from JD Sports [...] and the solid update by Halma,” IG analyst Chris Beauchamp commented.
“But the updates from one of its flashiest members and also one of its more staid constituents has had little overall effect given their small weighting.
“Bigger names like Shell, bolstered by a rising oil price, have had more effect on a day that has seen a continuation of the index’s recent strength.”
3.45pm: HMV holds off store openings, says job cuts a threat after Budget
HMV has joined the long list of companies warning over the impact of employer national insurance contribution hikes in last month’s Budget.
Owner Doug Putman warned 2025 might not see the retailer open any new stores in an interview with The Telegraph, against plans for between five and 10 previously.
“We would love to continue to open stores, but I think obviously with the Budget, there are some worries and some concerns,” he said.
“When we look at next year, we’ve got everything on pause so we could end up opening five stores but I think more than likely we’re not. I think we’re probably getting close to zero.”
He added surging costs brought a greater risk, with his comments adding to backlash against the Budget, including from the likes of John Lewis, Sainsbury’s, Wetherspoons and M&S.
“I would be surprised if we could find a way to get through this without cutting jobs,” he also told The Guardian, adding staff typically taken on after Christmas recruitment drives may not get the opportunity this year.
3.24pm: Nvidia drops, but reaction ‘unusually mild’
Nvidia Corp investors appeared to refrain from any major reaction to the chip-making giant’s Wednesday evening third-quarter earnings.
While shares were down 0.8% as Wall Street trading got into full flow on Thursday, XTB analyst Kathleen Brooks highlighted the reaction had been “unusually mild” for Nvidia.
“The average move in Nvidia’s share price in the day after earnings has been 8% in the last eight quarters,” she pointed out.
Earnings and revenue came in ahead of expectations for the quarter, though guidance for the final three months of the year had appeared to threaten sentiment.
“The company’s conservative forecast for [fourth quarter] revenues could be a deliberate attempt to lower the bar and make outperformance more likely down the line,” Brooks added.
“Or, it could be a sign that the company is concerned about supply constraints that could limit their ability to fulfil all the demand for Blackwell chips.
“This may explain the market’s lukewarm reaction to these results.”
Nasdaq was down 0.5% on Thursday morning, while the Dow Jones added 0.4% and S&P 500 moved slightly higher.
2.57pm: Wall Street off the mixed start; Google parent drops on break-up order
Wall Street faced a mixed start on Thursday as NVIDIA Corp shares struggled for direction following its latest earnings.
The Nasdaq fell 0.3% in early trading, as the S&P 500 also dipped below the mark, but the Dow Jones gained 0.2%
Nvidia investors appeared to be weighing the company’s Wednesday after-hours results, as shares bounced between positive and negative territory on the market's open.
Shares were up 0.3% early on, having fallen below the mark initially and after a drop overnight in the wake of the third-quarter update.
Elsewhere, Alphabet Inc was among the big fallers following confirmation the Department of Justice had demanded subsidiary Google sell its Chrome web browser business.
The proposal was filed in court late on Wednesday in a bid to stop the technology giant from maintaining its online search monopoly after a landmark ruling earlier in the year, prompting shares to drop 4.8% as trading got underway.
2.04pm: John Lewis boss slates ‘two-handed’ Budget tax ‘grab’
John Lewis Partnership boss Nish Kankiwal has become the latest to take aim at chancellor Rachel Reeves and warn of booming costs on the back of the Budget.
“That seems to be, you know, sort of [a] two-handed grab, and that’s unhelpful,” he told the Financial Times, referencing employer national insurance contribution increases unveiled in last month’s Budget.
The John Lewis and Waitrose owner faced “tens of millions” in extra costs from next year, he added, warning “the last thing we need is a resurgence of inflation”.
“We just got that under control, and inflation is not good for anybody. We will try and control [pricing] as much as possible.”
A “radical change in business rates” should also be weighed by the government, Kankiwal argued, after reforms have been delayed.
1.45pm: US jobless claims come in below expectations
New unemployment benefit claimant numbers across America fell last week, Department of Labor figures showed on Thursday.
Some 213,000 new initial claims were filed over the course of last week, marking a 6,000 decline on the previous week’s 219,000.
Expectations had been for 220,000 initial jobless claims, implying fewer layoffs than anticipated were made and in turn suggesting the US job market remains healthy.
However, the total number of those seeking unemployment benefits hit the highest level since November 2021, at 1,908,000, following a 36,000 increase.
1.30pm: Wall Street set for gain as Nvidia reverses on decline
Futures had Wall Street heading higher ahead of Thursday’s open as jitters around Nvidia Corp’s earnings appeared to wear off.
Nvidia backtracked on a decline overnight to sit 1.1% higher before the bell, as investors mulled Wednesday’s post-market news of a 94% surge in third-quarter revenue to $35.1 billion.
The Nasdaq was seen climbing 0.3% as Thursday’s open approached, while futures had the Dow Jones and S&P 500 up 0.4% each... Read more
1.09pm: JD Sports' update prompts mixed analyst reaction
JD Sports Fashion PLC (LSE:JD.)'s warning full-year profit would be at the low end of expectations has faced mixed reviews from analysts.
Barclays offered up an ‘underweight’ rating following the update, while Shore Cap doubled down on a ‘buy’, arguing the shares were undervalued, as Panmure Liberum reiterated a 'hold'.
Barclays noted investors may well have anticipated softer trading ahead of the update, pointing to a near 30% drop in JD Sports’ shares since mid-September.
“Other US retailers have mentioned the warmer autumn weather being unhelpful, but that trading has improved as weather has got colder into November,” it said.
Barclays forecast full-year pre-tax profit of £979 million, against wider expectations for £986 million, with Shore Cap cutting its estimate to £960 million and Panmure also anticipating a wider reduction.
“That said, the group is growing, operating stores to high standards, and has the benefit of Courir and Hibbett yet to harvest,” Shore Cap said, after acquisitions which JD had said aided a 1,224 increase in its store base to 4,541 since the start of the year.
“Being international in scope, it is less vulnerable to the naivety and deceptions of the new UK government.”
JD Sports had cited consumer caution, unseasonal weather and the US election as having hit trading in October, leaving pre-tax profit on course to sit closer to £955 million in its range of up to £1,035 million... Read more
Shares fell 11.6% on Thursday.
12.31pm: Manufacturing output hampered by political uncertainty
Manufacturing output across the UK declined over the three months to November as global political uncertainty weighed on sentiment, figures showed on Thursday.
According to the Confederation of British Industry, volumes declined by a weighted average of 12% over the quarter, against a 6% drop in the three months to October.
Some 14 of 17 sub-sectors recorded lower output, with an overall rise expected again in the three months to February.
“Output has underperformed expectations in recent months,” CBI lead economist Ben Jones said.
Manufacturers had cited “uncertainty around the UK Budget, the US elections and recent political instability in Europe” as leading to orders being cut or cancelled, he added.
12.05pm: Mitie slumps as national insurance hike to add £25mln in costs
Mitie Group PLC (LSE:MTO) shares slumped on Thursday after the FTSE 250-listed outsourcing firm posted better interim results but warned of surging costs due to Budget tax increases.
A hike in employer national insurance contributions (NICs), laid out in last month’s Budget, was set to add £25 million to costs next year, Mitie said in results on Thursday.
This would reflect “contractual and commercial recovery through pricing,” it added, while “margin enhancement initiatives and other management actions” would mitigate the hit.
Mitie also reported an increase in revenue by 8% to £2.43 billion over the six months to September, and 10.5% jump in operating profit to £63 million.
Its interim dividend was lifted from 1.0p to 1.3p per share on the back of the results.
Shares fell 5.3% following the update.
11.29am: Shell, BP higher as oil spikes on Russia-Ukraine strike reports
Oil prices also climbed throughout Thursday morning on the back of mounting fears over tensions around the Ukraine-Russia conflict.
The price of benchmark Brent crude increased by 1.3% to US$74.04 a barrel over the morning as traders weighed reports of missile strikes between Russia and Ukraine.
Fears of escalations had been fuelled as Ukraine used UK and US-made long-range missiles to strike Russia for the first time following authorisation earlier in the week.
“For oil, the risk is if Ukraine targets Russian energy infrastructure, while the other risk is uncertainty over how Russia responds to these attacks,” ING analysts noted.
Reports on Thursday said Russia had used an intercontinental ballistic missile for the first time to strike the Ukrainian city of Dnipro.
Brent crude was up 4.4% since Monday on Thursday as a result.
Shares in heavyweights BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) ticked up 1.1% and 0.9% on Thursday.
11.15am: Endeavour gains as gold fuelled by Ukraine-Russia tension
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) sat among the FTSE 100’s risers on Thursday as gains coincided with a fresh boost for gold on mounting tensions around the Russia-Ukraine war.
Spot gold ticked up 1.7% to US$2,670 an ounce on Thursday, returning to levels seen earlier in the month as a rally fuelled by uncertainty around the US election wore off.
The latest rally, of 5% over the past week, has been driven by fears of escalations in the Russia-Ukraine conflict with authorisation for the use of US and UK-made long-range missiles for the first time.
“Gold continues to be the safe haven asset class of choice for both investors and central banks,” institutional money manager Robeco said.
Endeavour ticked up 2% to sit only behind Halma among the FTSE 100’s biggest risers on Thursday.
10.57am: Wall Street to drop as Nvidia slides after earnings
Wall Street faced a negative start on Thursday in the wake of Nvidia Corp’s earnings, which saw the chip-making giant slip almost 3% in pre-market trading.
Futures had the Nasdaq down 0.4% ahead of the opening bell, while the S&P 500 and Dow Jones were seen 0.3% and 0.2% lower respectively.
Nvidia’s highly anticipated earnings after Wednesday’s close failed to drum up excitement, despite showing third-quarter revenue and earnings ahead of expectations once again.
Shares fell 2.9% in pre-market deals, with Nvidia having reported a 94% increase in revenue to $35.1 billion and jump in per-share earnings to $0.81 from $0.40.
Fourth quarter guidance of $37.5 billion in revenue “raised some concerns” though, according to Saxo analysts, which added “it could fall short” of expectations.
“Additionally, the rollout of its new Blackwell chips lacked specifics, with the company admitting supply issues that would prevent meeting demand in the near term,” Saxo said.
Attention on Wednesday turned to earnings from Baidu Inc, Deere & Co and Intuit Inc (NASDAQ:INTU, ETR:ITU).
US-listed shares in Chinese internet search provider Baidu slipped 3.2% ahead of Thursday’s open after third quarter figures showed a 3% drop in revenue as it grappled with soft advertising spend on the back of wider economic weakness.
Deere & Co and Intuit gained slightly in the meantime ahead of their updates.
9.58am: Public sector pay hikes push up government borrowing
Public sector pay hikes, including last month’s increase for teachers and NHS staff, fuelled last month’s jump in government borrowing as debt payments also surged.
ONS figures on Thursday showed public borrowing jumped by £1.6 billion year on year to £17.4 billion in October to its second-highest level on record for the month.
“Pay rises and inflation increased running costs,” the ONS said, including after teachers and NHS staff were awarded backdated pay hikes from last month.
Debt interest payments also increased by £0.5 billion to £9.1 billion last month, marking the highest October figure since records began.
Central government spending went up by £2.5 billion to £36.9 billion as a result, the figures showed.
“[Chancellor] Rachel Reeves has promised that she won’t borrow to fund day-to-day spending which is why the Budget contained those huge and unpopular tax increases,” AJ Bell's Danni Hewson commented.
“But if jobs are cut, if wages don’t go up as they might otherwise have done, and if inflation does remain steadfastly sticky, then those sums get rather more difficult and the spectre of further tax increases looms that bit larger.”
9.30am: JD Sports leads index lower
JD Sports Fashion PLC (LSE:JD.) tumbled on Thursday morning after warning “volatile” trading over the third quarter would leave full-year profit at the low end of guidance.
Shares fell 13.2% early on after the results, which the retailer noted had been hit by consumer caution and the likes of uncertainty around the US election.
“JD Sports did little to assuage more recent investor concerns, which have weighed heavily on the share price,” interactive investor analyst Richard Hunter commented.
Halma PLC (LSE:HLMA) led risers in the meantime, having climbed 9.6% after hiking its dividend and unveiling revenue in excess of £1 billion for the first half of the year.
Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) was also among risers as gold racked up a 1.6% gain for the day to reach US$2,665 an ounce.
Overall, the FTSE 100 fell 16 points to 8,068.
9.18am: Royal Mail warns of price hikes on £120mln Budget tax hit
International Distribution Services PLC has warned of price hikes on a surge in costs due to higher employer national insurance contributions (NICs).
The Royal Mail owner on Thursday in interim results noted the increase, brought in through last month’s Budget, would lead to a £120 million uplift in the delivery firm’s NIC bill annually.
“As a major employer with around 130,000 permanent employees, the changes to national insurance will disproportionately impact our business,” chief executive Martin Seidenberg said.
He added this made reform to Royal Mail’s Universal Service Obligation, which requires it to deliver letters six days a week, “even more urgent”.
Royal Mail posted a £67 million loss for the first half, against £319 million a year earlier, as revenue climbed 10.7% to £3.9 billion.
IDS’ parcel delivery wing, GLS, saw profit fall 14.6% to £128 million in the meantime, leaving overall group profit at £61 million, compared to a £169 million loss a year ago.
A £22 million cost had also been incurred over the first half in relation to the company’s proposed takeover by Czech billionaire Daniel Kretinsky’s EP Group.
“These costs mainly relate to the provision of financial and legal advice,” IDS said, with the takeover having faced scrutiny over security concerns since its agreement in May.
8.44am: Halma soars as dividend hiked on record first half
Halma PLC (LSE:HLMA) surged 9.5% to top the FTSE 100’s risers on Thursday morning after hiking its dividend on a record first-half performance.
Revenue jumped 13% to £1.07 billion in the six months to September, aiding a 17% increase in adjusted pre-tax profit to £222.5 million, the safety equipment firm reported.
Halma noted this marked a record performance, prompting a 7% hike in its interim dividend from 8.41p to 9.00p per share.
Guidance was reiterated on the back of the results, with adjusted pre-tax earnings margins expected to sit around 21.0% over the full year, against 20.7% in the first half.
“These results further extend our track record of delivering strong and compounding revenue and profit growth, substantial cash generation enabling continued investment,” chief executive Marc Ronchetti commented.
“We are well positioned to make further progress in the remainder of the year and in the longer term.”
8.25am: Government borrowing hits second-highest on record in October
Government borrowing increased to its second-highest level on record for October last month, ONS figures showed on Thursday.
Public sector borrowing climbed by £1.6 billion year on year to £17.4 billion in October 2024, as the budget deficit ticked up by £0.4 billion to £12.7 billion.
Both marked the second-highest figure for October since records began in 1993, the ONS said, as higher tax receipts failed to offset an increase in spending.
“Despite the changes announced at the Budget, fiscal policy will continue to tighten over the next few years,” EY ITEM Club analysts said.
“Moreover, the chancellor has left herself little wiggle room against her own fiscal rules and may need to implement more tax rises in future years if the tax take disappoints or spending proves higher.
“Indeed, if the rise in market interest rates since the Budget is sustained, the government would already have less headroom against its fiscal targets.”
8.15am: Close Brothers up as motor finance dispute to hit Supreme Court
Close Brothers Group PLC (LSE:CBG) moved higher in early trading after confirming it would appeal to the Supreme Court against an October ruling over its motor finance practices.
“It remains our position that the group disagrees with the court's findings,” it said after being found liable alongside Lloyds Banking Group PLC (LSE:LLOY) for potentially billions of pounds over failure to accurately disclose commissions received from loans for car purchases.
The first-quarter update also showed the firm’s loan book increased 0.6% sequentially and the year-to-date net interest margin remained steady at 7.3%... Read more
Shares climbed 1.5%.
8.05am: Jet2 expecting overshoot profit expectations
Jet 2 PLC has unveiled record results and passenger figures for the first half of the year and said profit should beat expectations in 2024 as a result.
Revenue climbed 15% to £5.09 billion in the six months to September, aiding a 16% increase in pre-tax and foreign exchange adjusted profit to £772.4 million.
Passenger numbers climbed from 11.97 million to 13.34 million in the meantime as package holiday and flight-only sales both grew, alongside capacity.
“Even in difficult economic times, the annual overseas holiday remains a highly valued and eagerly anticipated experience, often taking precedence over other discretionary spend,” chief executive Steve Heapy commented.
Pre-tax and foreign exchange profit was likely to beat the company-compiled average market forecast of £541 million over the full year as a result... Read more
7.34am: JD Sports warns of consumer caution, US election hit
JD Sports has warned of low-end profit over the year after the likes of uncertainty around the US election drove volatile trading in the third quarter.
“After a good start to the period, helped by strong back-to-school sales, we saw increased trading volatility in October,” chief executive Régis Schultz said in a statement.
North America and the UK were particularly affected, he added, causing like-for-like sales to drop by 1.5% and 2.4% across each respectively in the three months to November.
Sales also dropped by 3.8% in the Asia Pacific region, as a 3.5% increase across Europe failed to prevent a 0.3% decline in revenue across the entire group.
Promotional activity was elevated toward the end of the period, JD Sports said, as unseasonable weather and consumer caution hit.
JD Sport added there was “evidence supporting suppressed demand in the US ahead of the election”.
Full-year pre-tax profit would likely sit at the lower end of JD Sports’ guided range of £955 million to £1,035 million as a result, the company warned.
7.14am: Stocks seen just above the mark
Futures had the FTSE 100 ticking up slightly on Thursday morning, by 9 points to 8,146, following Wednesday’s 13-point drop.
Nvidia Corp was in focus overnight, falling 2.5% in post-market trading despite announcing revenue surged by 94% to $35.1 billion and earnings widened from $0.40 to $0.81 per share over the third quarter.
Though this was ahead of expectations, “rising worries regarding margins and competition could lead to a certain profit taking over the next few sessions,” Swissquote Bank’s Ipek Ozkardeskaya noted.
“One thing is clear, yesterday’s announcement sounded like the next few quarters won’t be as fun as the last few ones.”
Asian markets were largely dragged down overnight as a result, with Japan’s Nikkei falling by 0.9% and China’s Shanghai Composite trading flat.
5.00am: JD Sports, IDS, Halma and Close Bros in focus
Thursday brings a busy day for company updates as JD Sport, Close Brothers, IDS and Halma all line up to report.
JD Sports' UK business is expected to have remained under pressure... Read more
Any views from Close Brothers on the ongoing motor finance probe will be watched for... Read more
Royal Mail owner IDS' report will be clouded by questions around its looming takeover... Read more
Business as usual will be hoped for by investors when Halma updates... Read more
Announcements due:
Trading updates: Breedon Group Plc, Crest Nicholson Holdings PLC, JD Sports Fashion PLC (LSE:JD.), Close Brothers Group PLC (LSE:CBG), Restore Plc
Interims: CMC Markets PLC, First Property Group PLC, Foresight Environmental Infrastructure (LSE:FGEN) Ltd, Halma PLC (LSE:HLMA), Jet2 PLC, Liontrust Asset Management, NextEnergy Solar Fund Ltd, Norcros PLC, Speedy Hire PLC, Warehouse REIT PLC, XPS Pensions Group PLC, Investec PLC
Finals: Britvic PLC, Grainger Plc
US earnings: Baidu Inc, Deere & Co, Intuit Inc (NASDAQ:INTU, ETR:ITU)
AGMs: Abrdn UK Smaller Companies Growth Trust PLC, Close Brothers Group PLC (LSE:CBG), Dunelm Group PLC, Eagle Eye Solutions Group PLC, Fidelity Asian Values PLC, Future Metals, Invesco Global Equity Income Trust PLC, JD Wetherspoon PLC, Origin Enterprises PLC, Pacific Horizon Investment Trust PLC, Pan African Resources PLC, PZ Cussons PLC, Thorpe PLC
Economic announcements: Public Sector Net Borrowing (UK)
Ex-dividends to reduce FTSE 100 by: 3.27