- FTSE 100 jumps 117 points, sets record at 8,767
- BoE cuts interest by 0.25% to 4.50%
- AstraZeneca surges on earnings beat
4.07pm: FTSE 100 in line for record close
London’s blue chips looked well on course to close out the day at a record come late trading on Thursday.
Having rallied 117 points, or 1.3%, to 8,740, the FTSE 100 was off its intraday record of 8,767, set earlier, but in line to trounce its previous closing high of 8,646.
Gains came as the Bank of England cut interest by 0.25% as expected, sending the pound down 0.74% against the dollar to US$1.2413, but buoying US-exposed firms in turn.
Miners sat among the day’s risers as a result, with AstraZeneca PLC leading the way on a 6.6% gain after impressing with full-year results and also aiding gains as the FTSE 100’s largest company.
IG analysts noted “the difference between the FTSE 100 and the UK economy have been starkly laid bare today,” as the BoE’s rate call also saw economic growth projections slashed.
“While the index has surged to new record highs thanks to solid earnings today and yesterday from index heavyweights AstraZeneca and GSK, the outlook for UK plc continues to be grim.
“Sterling’s weakness has undoubtedly boosted the index’s attractiveness for global investors, who continue to relish the opportunity to go bargain-hunting in UK names.”
Mid and small caps enjoyed strong gains too over the day, with the FTSE 250 surging 1.3% and AIM all-share adding 0.7%.
3.01pm: Wall Street higher as tariff fears take back seat
Wall Street enjoyed a positive but albeit calm start to Thursday’s session as fears around tariffs under Donald Trump appeared to dissipate for the time being.
Following the opening bell, the Nasdaq and S&P were both up by 0.3%, while the Dow Jones ticked up 0.1%.
This meant the trio had comfortably recovered after a beating early on in the week after Trump confirmed tariffs for the US’ neighbours, which were subsequently pushed back, and China.
Among companies, Ralph Lauren Corp stood out among the risers, surging 15.9% on news of expectation-beating third-quarter figures and hiked expectations.
Stronger-than-anticipated results also saw another fashion firm, Tapestry Inc, soar 16.7% early on.
Skyworks Solutions PLC faced a battering in the meantime, dropping 25.5% after the supplier to Apple Inc laid out underwhelming expectations, including for its mobile wing.
2.14pm: FTSE 100 off record as BoE outlook weighed
The FTSE 100 moved off its earlier record of 8,767 to 8,754 for a gain of 131 points, or 1.5%, on Thursday afternoon as investors weighed commentary from the Bank of England.
Having opted to cut the bank rate from 4.75% to 4.50%, the central bank flagged two of the Monetary Policy Committee’s seven members had backed a steeper reduction.
Forecasts for economic growth over the course of 2025 were also slashed from 1.50% to 0.75% as inflation was seen rising to 3.7% later in the year.
“The BOE’s updated forecasts for growth and inflation [...] shocked investors, and the initial reaction to the report was dovish,” XTB analyst Kathleen Brooks said.
“However, now that the dust has settled a bit, traders are not so sure,” she added, pointing to little-changed expectations for two reductions in 2025.
Brooks noted MPC member Catherine Mann’s vote in favour of a 0.5% cut had given the market “food for thought” though, given her traditionally hawkish stance.
“The fact that she thinks the economic picture is so dire [...] is a sign that the BoE could be behind the curve,” Brooks said.
Mid and small caps followed the FTSE 100 in racking up solid gain on Thursday, with the FTSE 350 up 1.6% and AIM all-share gaining 0.9%.
Faron Pharmaceuticals PLC was among the junior market risers, gaining 8.3% on news of an oversubscribed placing in which it raised €12 million (£10 million)... Read more
1.07pm: Wall Street set for muted start as FTSE 100 continues to smash records
Wall Street looked in line for a muted start on Thursday as calm continued to seep back into the market after Donald Trump’s tariff talk had dominated the week so far.
Futures showed the Nasdaq off the mark ahead of the bell, while the S&P 500 and Dow Jones were seen gaining slightly in the meantime.
Tickmill Group partner Patrick Munnelly noted the relative stability, which stretched to bonds, marked a contrast to the market “meltdown” on news of sweeping US tariffs.
Trump had firmed these up for Canadian, Mexican and Chinese goods over the weekend, before reaching deals with the US’ neighbours for a one-month pause on the measures.
China responded with retaliatory measures in the meantime, with Munnelly noting “inconsistent policy [had] dampened investor enthusiasm”.
The 10% levies on China were lower than previously threatened though, Trade Nation’s David Morrison flagged.
“There are hopes that it will get rolled back before retaliatory tariffs from China kick in next week. Presidents Trump and Xi Jinping are expected to hold talks in the next few days.”
Back in London, the FTSE 100 continued to hit new highs after the Bank of England cut interest, gaining 141 points to reach 8,764.
The pound lost further ground against the dollar, meanwhile, slumping 1.09% to US$1.2369.
12.11pm: Bank of England cuts by 0.25%, though larger move mulled
The Bank of England has opted to cut its key interest rate by 0.25% to 4.50%, despite expectations for faster inflation ahead after weak economic growth recently.
Seven of the Monetary Policy Committee’s members backed a 0.25% reduction, the central bank said on Thursday, while the other two had favoured a larger 0.5% cut.
Forecasts showed the Bank of England expected inflation to climb as high as 3.7% in the third quarter of 2025 as gross domestic product picked up from the middle of the year.
However, the bank noted the reduction followed weaker-than-expected economic growth in November, as business and consumer confidence also declined.
“Based on the committee’s evolving view of the medium-term outlook for inflation, a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate,” it said.
“In addition to the risks around inflation persistence, there are also uncertainties around the trajectories of both demand and supply in the economy that could have implications for monetary policy.”
The FTSE 100 rallied further on the update, gaining 132 points to hit yet another record of 8,755.
11.36: AstraZeneca, miners buoy FTSE 100 in record territory
London’s blue chips remained well in record-breaking territory on Thursday, thanks in no small part to largest constituent AstraZeneca PLC.
Having repeatedly notched new highs in a stellar start to the new year, the FTSE 100 rallied to an all-time intraday peak of 8,736 early on.
AstraZeneca, its and the UK’s biggest company by market capitalisation, added 4.7% in tandem, fuelled by expectation-beating earnings for last year.
Pre-tax profit jumped 38% to US$8.7 billion (£7.0 billion) at constant currency, it said, on revenue growth of 21% to US$54.1 billion, buoyed by cancer, respiratory and immunology drugs.
Several other factors aligned to aid London’s blue chip index though, including a dip in the pound ahead of the Bank of England’s latest interest rate call at midday.
Sweeping expectations of a 0.25% interest rate cut to 4.50% sent sterling tumbling 0.69% against the dollar to US$1.2419.
In turn, a string of FTSE 100 constituents with exposure to the US racked up gains, including the likes of Ashtead Group PLC and Entain PLC, as miners lead the pack.
Anglo American PLC, boosted by expectation-topping production figures, jumped 6.6%, while Antofagasta PLC, Glencore PLC and Rio Tinto also headed higher.
Come late morning, the FTSE 100 sat 101 points higher at 8,724.
10.50am: BoE expected to cut interest to 4.5%
The Bank of England is widely expected to cut interest on Thursday, leaving attention on its forecasts as markets price in a further two reductions in 2025.
A reignition of energy prices and increasing labour costs threatened a "more difficult phase" for the Bank's monetary policy committee though, said Citi economist Benjamin Nabarro, after fading consumer prices justified rate cuts last year.
Inflation will increase to around 3.5% by April as a result, he predicted, compared to December’s consumer price index reading of 2.5%.
“This is even as the labour market deteriorates,” Citi said, meaning the MPC will carry out a “cautious” rate cut from 4.75% to 4.5%.
Barclays economists also expect the MPC to cut the base rate by a quarter of a percentage point at this week's meeting but predict that there will not be full agreement among the committee, with a 7-2 vote split.
Some economists think there could be hints this week that the Bank could lower interest rates again in March.
"Until now, the BoE has cut at alternate meetings, but a stagnating economy and declining employment argue for more urgent action," said Andrew Wishart at Berenberg.
Noting that December payroll data showed further job losses, he said it would be "sensible for the BoE to lower interest rates to prevent a larger drop in employment", while noting that rising wages will be a concern for the committee and not something that monetary policy can directly affect.
There are not likely to be any "material" changes in the Bank's forecasts, the Barclays team added, with the MPC expected to keep their options open and stress uncertainty in the outlook given global and domestic developments and "the potential for noise" in the most recent data.
Thursday’s meeting comes after gross domestic product figures showed the UK economy flatlining towards the end of last year, but inflation eased to 2.5% from 2.6%.
10.02am: Warpaint tumbles despite better trading
Warpaint London PLC tumbled over 15% on Thursday after news of stronger trading appeared to underwhelm investors.
Revenue was said to have increased 13.8% to £102 million over the course of last year as pre-tax profit jumped almost a third to £24 million.
Stronger trading into the new year was also signalled, with revenue climbing 15% in January “at an improved margin”.
Retailers have come under pressure in recent months though, with April's employer national insurance hikes threatening to hike costs after muted trading across the wider sector in the run-up to Christmas.
Chief executive Sam Bazini highlighted “ongoing consumer spending headwinds,” but said stronger figures came despite this.
Shares dropped 15.8% to 448p.
9.14am: Government plans major overhaul to nuclear planning rules
Plans have been unveiled to overhaul “archaic” planning rules in a bid to force through mini nuclear reactor projects.
Having last completed a nuclear plant in 1995, the government warned in a statement that the UK had fallen behind in the global race “to harness cleaner, more affordable energy”.
Reforms to include small modular reactors (SMRs) in planning rules, scrap the set list of sites where they could be built and remove time limits on nuclear projects were unveiled.
This would make it easier to build new nuclear, according to the government, allowing sites to be placed “anywhere” across England and Wales.
Just one nuclear project, Hinkley Point C, is under construction in the UK, with another planned at Sizewell and promises long been made for a string of mini reactors.
Rolls-Royce Holdings PLC is among those developing such SMRs, which have been floated as a cheaper and quicker-to-build alternative to conventional plants... Read more
8.43am: FTSE 100 passes 8,700 for first time as AstraZeneca surges
An early rally saw the FTSE 100 notch a new record high of 8,710 on Thursday morning after an 87-point gain.
Gains were aided by a 4.8% jump for its largest constituent, AstraZeneca, after the pharmaceutical firm detailed expectation-beating earnings for the year.
Revenue for 2024 grew 21% to $54.1 billion (£43 billion), while pre-tax profit jumped 38% to $8.7 billion on a constant currency basis.
The fastest-growing areas were cancer treatments, up 24%, and respiratory and immunology drugs, up 25%... Read more
Elsewhere in London, FTSE 250-listed Babcock International Group PLC rocketed 11.1% as news of strong trading coincided with upgraded guidance… Read more
8.33am: Compass drops after flagging currency hit
Compass Group PLC dropped on Thursday after detailing stronger first-quarter figures but flagging up a potential hit on currency movements.
Group revenue climbed by 9.2% in its first quarter to the end of December, as growth was recorded across all regions and sectors, the food services firm said.
North American and European sales increased by 9.7% and 8.4% respectively, as revenue across the rest of the world, which Compass said now accounted for 5%, climbed 7.9%.
However, currency movements would hit revenue by US$558 million (£447.9 million) and operating profit by US$36 million if spot rates remained over the coming year, it said.
This would compare to respective hits of US$69 million and US$16 million registered last year.
Guidance remained unchanged though, with high single-digit underlying operating profit growth, organic revenue growth above 7.5% and ongoing margin progression still expected.
Shares fell 3.2% to 2,727p on Thursday.
8.15am: FTSE 100 rallies at open to match record
London’s blue chips enjoyed a strong start to Thursday’s session, with the FTSE 100 jumping 69 points to 8,692 as trading got underway to match its intraday record.
Just 10 of the index’s constituents dipped into the red initially, as miners led wide-ranging gains.
Anglo American PLC ticked up 3.5% to head the risers after a production update, ahead of the likes of Antofagasta PLC, Glencore PLC and Rio Tinto PLC.
AstraZeneca PLC was also among risers, climbing 3.4% following news of a jump in full-year profit on strong cancer, lung and immunology treatment sales.
Mid and small caps also gained early on, with the FTSE 350 up 0.7% and the AIM all-share adding 0.2%.
ANGLE PLC was among the junior market’s risers, surging 9.9% on news of a significant breakthrough in understanding how cancer spreads, thanks to its Parsortix system… Read more
7.58am: Warpaint signals strong start to 2025 as profit surges
Warpaint London PLC said Thursday that strong trading had continued into the new year after both revenue and profit grew in 2024.
Revenue increased from £89.6 million to £102 million, or by 13.8%, over the course of last year to the end of December, the cosmetics retailer announced on Thursday.
Pre-tax profit jumped almost a third in the meantime, from £18.1 million to £24 million.
Warpaint added the strong performance had continued into the new year, with revenue climbing 15% year on year in January “at an improved margin”.
Chief executive Sam Bazini noted improvement came “despite ongoing consumer spending headwinds”.
“We expect to see continued growth across the group in 2025 and we look forward to completing the acquisition of Brand Architekts later this month.”
Warpaint had unveiled a £13.88 million bid to buy the challenger beauty firm in December, which it said at the time would improve efficiency, reduce costs and drive profitability.
Full results for 2024 would be published in late April, Warpaint added.
7.38am: Watches of Switzerland flags 'good' trading, sticks to guidance
Watches of Switzerland Group PLC has stuck to full-year guidance and fagged further stabilisation in the UK and momentum in the US momentum.
Trading had been “good” over the holiday period, the company said on Tuesday, leaving performance during the third quarter to January 26 in line with expectations.
Demand had remained strong and outstripped supply in both the UK and US, including as investment in showrooms helped to drive market share gains, it added.
“Over the period, we have seen further stabilisation of the UK market in both luxury watches and jewellery, while the US market has seen continued momentum.”
Guidance for revenue growth of 9% to 12% to between £1.67 billion and £1.73 billion was held as a result, with profit margins seen expanding by 0.2 to 0.6 percentage points.
Recent acquisitions of Hodinkee and Roberto Coin were said to have progressed well, with a new £150 million facility taken after the latter increasing liquidity headroom.
Plans were also laid out for Rolex agencies to be rolled out to relocated showrooms across the US over the coming quarter, as a new flagship boutique opened on London’s Old Bond Street.
7.14am: FTSE 100 set for further gain before BoE call
Futures had the FTSE 100 ticking up a further 28 points to reach 8,664 ahead of the Bank of England’s latest rate call, following Wednesday’s 52-point jump.
Expectations widely were for the central bank to cut interest from 4.75% to 4.50% after data pointing to deteriorating economic conditions in recent months, leaving focus on its outlook.
“What the BoE’s updated forecasts tell us will determine if the OIS market is right to expect a further two cuts later this year, or if the market is underpricing,” XTB analyst Kathleen Brooks said.
Elsewhere, Asian markets had largely gained overnight following a positive session on Wall Street in spite of ongoing uncertainty around US-China trade relations.
5.00am: Thursday's schedule
AstraZeneca and Watches of Switzerland will be in focus ahead of the Bank of England's rate decision on Thursday.
AstraZeneca reports after peer GSK impressed with hiked sales targets on Wednesday.
Concerns around growth visibility at Watches of Switzerland have been raised before its update... Read more
Announcements due:
Trading updates: Compass Group PLC, Jtc PLC, Watches Of Switzerland Group PLC
Finals: AstraZeneca PLC
US earnings: Bristol-Myers Squibb, Eli Lilly and Co, Philip Morris International, Roblox, Amazon.com Inc, Cloudflare, Illumina, Pinterest, Take-Two Interactive Software
AGMs: Compass Group PLC, Hargreave Hale AIM VCT PLC, Intuitive Investments Group PLC, Sage Group PLC
Economic announcements: Interest Rate Call (UK), Initial Jobless Claims (US), Retail Sales (EU)