- FTSE 100 up 50 points
- IAG sets €1bn buyback
- IMI tops risers on record profit
4.10pm: FTSE 100 heads for positive end to week
London’s blue chips looked on course to close out the week in strong fashion, with the FTSE 100 up 50 points at 8,806 come late trading.
IMI PLC headed the risers late on, having added 6.2% after strong results earlier in the day, while Weir Group PLC followed.
Persimmon PLC and Rightmove PLC were also among the day’s winners, following the latter's results and news from Nationwide that house prices had climbed this month.
St James’s Place PLC led the fallers in the meantime, down 3.3%, alongside the likes of Howden Joinery Group PLC and Scottish Mortgage Investment Trust PLC.
The FTSE 100’s gain meant it had risen 1.7% for the week, with the FTSE 350 also climbing over the week, but the AIM all share dropping 1.8% in contrast.
2.46pm: Nasdaq drops in mixed start on Wall Street as inflation moderates
Wall Street faced a mixed start on Friday as personal consumption expenditure figures showed the Federal Reserve’s preferred measure of inflation had eased.
The Nasdaq shed a further 0.8% after the bell, as the S&P 500 moved slightly higher and the Dow Jones ticked up 0.3%.
Figures earlier on showed the PCE index had subsided from 0.4% to 0.2% between December and January and was up by 2.5% on an annual basis.
The core rate, which is closely watched by the Fed, came in at 2.6%, against an upwardly revised 2.7% in December in the meantime.
Focus had been on the figures for any insight into the path of rate cuts ahead given mounting uncertainty over the impact of tariffs under Donald Trump.
1.55pm: WPP slips further as Deutsche cuts target after results
WPP PLC has faced a share price target cut by Deutsche Bank analysts after disappointing with guidance in results on Thursday.
Though a ‘buy’ rating was reiterated, Deutsche took the advertising firm’s price target from 1,035p to 875p.
WPP had unveiled a 0.7% drop in reported revenue to £14.7 billion and 2.5% fall in operating profit to £1.7 billion on Thursday.
“Weaker client discretionary spend” had weighed, it said, leaving guidance of “flat to -2%” in like-for-like revenue less pass-through costs over the coming year.
Deutsche noted the results, which had seen shares plummet, dealt a “material hit to forecasts and investor sentiment”.
Analysts added: “Given the message that recovery looks second half-weighted, shares may take some time to reflect any better [or] improved trading.”
Shares fell a further 1.1% to 638.16p on Friday.
1.04pm: US non-farm payrolls the focus next week
A spate of announcements internationally promise to bring a busy week ahead, culminating in US job market figures on Friday.
First though, UK lending figures from the Bank of England on Monday will be in focus, incorporating mortgage approval data for January.
Expectations are for 65,700 approvals over the month, against an expectation-beating 66,500 in December, in part as buyers rush through deals before April’s stamp duty hike.
Across the Channel, Monday will also see inflation figures released from the Eurozone, before the European Central Bank’s interest rate decision on Friday.
Another cut, which would mark the sixth since last June, is expected from the central bank on a moderation in inflation through February.
US non-farm payrolls and unemployment data for February will then dominate later on Friday, offering further clarity on Federal Reserve cuts as Trump tariffs cloud the picture.
Some 143,000 jobs had been added to the US economy in January, against the 175,000 expected, as unemployment fell to 4.0%.
The addition of 180,000 jobs and an unchanged unemployment reading have been forecast this time around.
“This outcome would help reinforce current market pricing that the Fed will keep rates on hold until mid-year, before delivering two [...] cuts in the second half,” IG analysts said.
12.14pm: FTSE 100 holds in green
Having overcome an early decline to rack up a gain on Friday, the FTSE 100 headed into the afternoon on the front foot, up 25 points at 8,781.
International Consolidated Airlines Group SA and IMI PLC tussled for the spot as the day’s biggest riser, both gaining over 5.0% after unveiling buybacks in impressive results.
Haleon Group PLC ticked up 4.1% meanwhile, rising just ahead of Weir Group PLC, as housebuilders and Rolls-Royce Holdings PLC were also among those to buoy the index.
Rightmove PLC, up 3.4%, had signalled a stronger year ahead on Friday morning, as Nationwide data also showed house prices had continued to grow in February.
Gains stretched to mid caps too, with the FTSE 350 rising eight points to 4,793, as the junior market continued to face pressure.
11.21am: Wall Street eyes brighter start as inflation figures loom
Wall Street looked set for a brighter start to the week’s final session as attention turned to inflation with personal consumption expenditure figures.
Having faced a beating on Thursday on ongoing fears around Donald Trump’s tariffs and a slump by Nvidia Corp after earnings, stocks were seen regaining slightly.
Futures had the S&P 500 up 0.4% ahead of Friday’s opening bell, while the Dow Jones and Nasdaq looked to rise by 0.3% each respectively.
Given jitters Trump’s tariffs could stoke inflationary pressure, Friday’s core PCE data, or the Federal Reserve’s preferred measure of inflation, has drawn attention.
Expectations are for the core index to have climbed by 0.2% in January, against December’s 0.4% uptick, as the figure rises by 2.8% on an annual basis.
“With the Federal Open Market Committee taking on a hesitant approach in the face of rising inflation expectations under Trump, today is a chance to prove the case one way or another,” Scope Markets analyst Joshua Mahony said.
10.33am: IMI tops risers on record profit and £200mln buyback
IMI PLC jumped over 5% on Friday after the engineering firm unveiled a £200 million buyback and flagged record profits for last year.
Operating profit was up 6% at £436 million on a 1% increase in revenue to £2.2 billion in the year to December 31, results showed.
Trading in process automation had been “outstanding,” while good demand and resilience was highlighted in its climate control and industrial automation wings respectively.
A full-year dividend of 31.1p per share was declared, marking a 10% increase, while an additional £200 million buyback, adding to £100 million of repurchases in 2024, was unveiled.
Shares jumped 5.3% to 1,993p on the results, placing IMI top of the FTSE 100 risers.
Weir Group PLC was alost among the winners, gaining 4.4% after announcing a £657 million deal to acquire mining software firm Micromine... Read more
Overall, the index overcame an early decline to rise by 14 points to 8,770.
9.48am: Rolls-Royce among risers again after impressive results
Rolls-Royce Holdings PLC headed higher again on Friday after expectation-smashing results secured continued backing from analysts.
Panmure Liberum repeated a ‘buy’ rating on the back of Thursday’s results, noting earnings and guidance had trounced its forecasts.
Underlying operating profit had jumped 57% to £2.5 billion on a 17% increase in revenue to £17.85 billion, prompting a £1 billion buyback and return to dividend payments.
Panmure flagged a “very strong” performance over the second half in its civil aerospace and power divisions on contract improvements, but said its defence wing was off.
Guidance for operating profit of £3.6 billion to £3.9 billion by 2028 outdid its forecast by roughly 10%, Panmure added though.
A 550p share price target was also reiterated, with Panmure noting the results should see Rolls-Royce “re-rated to at least match European peers Safran and MTU”.
Shares were up 1.2% at 740.2p on Friday, having soared on Thursday.
8.59am: Europe a sea of red as Trump tariff threats hang
Stocks across Europe faced pressure on Friday as renewed fears around tariffs under Donald Trump appeared to weigh.
Germany’s DAX dropped 0.6% early on, as France’s CAC also fell in line with a wider decline across the continent.
Having repeatedly threatened sweeping tariffs, including against the European Union, Trump has threatened a further 10% levy on Chinese goods most recently.
Deadlines for deals with Canada and Mexico also loom next week too, after measures had been pushed back by a month.
“Tariffs continue to drive the narrative,” Hargreaves Lansdown’s Derren Nathan said, “the only certainty in this saga is uncertainty”.
Back in London, the FTSE 100 was off 19 points at 8,736.
8.34am: House prices climb as stamp duty hike looms
House prices climbed faster than expected in February as a looming hike in stamp duty drew closer.
According to Nationwide, average house prices climbed by 0.4% or by 3.9% on an annual basis in February to £270,493.
This exceeded Reuters-polled analysts’ expectations for a 0.2% monthly increase and marked an uptick against January’s 0.1% growth.
Nationwide noted April’s increase in stamp duty was set to spark “volatility” in the market as buyers raced to complete deals to avoid higher tax bills.
“This will likely lead to a jump in transactions in March, and a corresponding period of weakness in the following months,” Nationwide economist Robert Gardner said.
First-time buyer activity was said to have recovered further, though overall transactions continued to lag pre-pandemic levels.
Nationwide added April’s stamp duty increase and regulatory uncertainty also appeared to have had a “cooling effect” on the buy-to-let market.
8.16am: FTSE 100 heads lower as IAG takes off
London’s blue chips followed declines on Wall Street as Friday’s session got underway, with the FTSE 100 shedding 34 points to sit at 8,721.
Miners and Scottish Mortgage Investment Trust PLC were among the early fallers, as just 18 of the index’s constituents headed higher early on.
British Airways owner International Consolidated Airlines SA led the risers in the meantime, gaining 3.5% after flagging a €1 billion buyback in stronger full-year figures.
Rolls-Royce Holdings PLC also ticked up further after impressing with results on Thursday.
Trading was also subdued for London’s mid and small-caps, as both the FTSE 350 and AIM all-share headed lower in the initial stages of the week’s final session.
Among other reporters, Rightmove PLC gained 1.1% after signalling revenue growth would accelerate over the coming year after climbing in 2024.
8.07am: Rightmove lifts dividend as revenue picks up
Rightmove PLC has unveiled a higher dividend after growing revenue and underlying profit last year and signalling further strength into 2025 on the likes of interest rate cuts.
A 6.1p per share final dividend was unveiled in results on Friday, taking the full-year payout to 9.8p and up 5%.
Underlying operating profit had increased 4% to £273.9 million over the year to December 31, the property portal said, on a 7% rise in revenue to £389.9 million.
Revenue growth of 8% to 10% was expected over the coming year, it added, as housing market conditions looked to improve.
Reduced interest rates by the Bank of England had fed through to the mortgage market, while resales had exceeded pre-pandemic levels as completions appeared to catch up.
Supply and demand was also said to be rebalancing “slightly” in the lettings market.
“We delivered strong results, demonstrating yet again the resilience of Rightmove's business model,” chief executive Johan Svanstrom said.
“We have a clear strategy to further digitise the home moving market, powered by the UK's largest set of property data and insights.”
7.47am: British Airways sets €1bn buyback on stronger profit
International Consolidated Airlines Group SA has announced a €1 billion (£830 million) buyback after the British Airways owner grew profit last year.
Post-tax profit climbed 2.9% to €2.7 billion in the year to December 31, the airline reported Friday, as revenue took off 9.0% to reach €32.1 billion.
Operating profit surged 22.1% to €4.3 billion in the meantime, beating analysts’ expectations for €3.7 billion.
Demand had remained strong, it said, with passenger numbers increasing 5.6% to 122 million and average load factor climbing 1.2 percentage points to 86.5%.
IAG added British Airways had made progress towards reaching a 15% margin over the medium term, with the figure at 14.2%, as part of a €7 billion transformation plan.
The company’s Spanish businesses had also neared a mid-term profit target of €1.5 billion, IAG said, with earnings of €1.4 billion.
“These results highlight the quality of our businesses and effectiveness of our strategy, underpinned by the successful execution of our transformation programme,” chief executive Luis Gallego commented.
A further €1 billion buyback would be carried out on the back of the figures, the airline announced, while a final €0.06 per share dividend was declared to take the full-year payout to €0.09.
7.18am: FTSE 100 set to follow Wall Street lower
The FTSE 100 was on course for a steep decline ahead of Friday’s session, with futures showing the index off 44 points after a gain on Thursday.
Declines were set to follow a negative session on Wall Street, as ongoing uncertainty around Donald Trump’s tariffs and underwhelming results from Nvidia Corp weighed.
The Nasdaq sank 2.8% and the S&P 500 dropped 1.6% throughout Thursday’s session, while Nvidia tumbled 8.5%.
Overnight, Asian markets also broadly fell into the red, with hefty declines seen for the likes of Chinese, Korean and Japanese stocks.
Friday's schedule:
British Airways owner IAG was flagged over its potential to deal a positive surprise... Read more
Announcements due:
Trading updates: Revolution Beauty Group PLC, Benchmark Holdings PLC
Finals: IMI PLC, International Consolidated Airlines Group SA, Morgan Advanced Materials PLC, Pearson PLC, Primary Health Properties PLC, Rightmove PLC, Spectris PLC, Tritax Big Box REIT PLC
AGMs: Alliance Pharma PLC, Belluscura PLC, Katoro Gold PLC
Economic announcements: Nationwide Housing Prices (UK), PCE Price Index (US)